## Pmtrate per nper pv[ fv[ type

This function returns the interest payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate. The result is a Double value.

The rate argument is a Double value specifying the interest rate for the payment period. For example, if the loan's annual percentage rate (APR) is 10 percent, paid in monthly installments, the rate per period is 0.1 / 12 = 0.0083.

The per argument is a Double value specifying the current payment period; per is a number in the range 1 through nper.

The nper argument is a Double value specifying the total number of payments. For example, if you make monthly payments on a five-year loan, nper is 5 x 12 = 60.

The pv argument is a Double value specifying the principal or present value. The loan amount is the present value to the lender of the monthly payments and it's a negative value.

The fv argument is a Double specifying the future value or cash balance after the final payment. The future value of a loan is \$0 because that's its value after the final payment. If you want to accumulate \$10,000 in your savings account over some period of time, however, the future value is \$10,000. If thefv argument is omitted, 0 is assumed.

The type argument specifies when payments are due, and its value can be a member of the Due-Date enumeration. Use DueDate.EndOfPeriod if payments are due at the end of the payment period; use DueDate.BegOfPeriod if payments are due at the beginning of the period. If the type argument is omitted, EndOfPeriod is assumed.

Suppose you borrow \$30,000 at an annual percentage rate of 11.5%, to be paid off in three years with payments at the end of each month. Here's how you can calculate the total interest, as well as the monthly interest:

Dim PVal, FVal, mPayments As Integer Dim APR, iPayment, TotInt As Decimal PVal = 30000 FVal = 0

APR = 0.115 / 12 mPayments = 3 * 12 Dim period As Integer For period = 1 To mPayments iPayment = IPmt(APR, period, mPayments, -PVal, FVal, 1) Console.WriteLine(iPayment) TotInt = TotInt + iPayment Next

Conso1e.WriteLine("Tota1 interest paid: " & TotInt)

The interest portion of the first payment is \$287.10, and the interest portion of the last payment is less than \$10. The total interest is \$5,276.

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