PPMT function calculates the principal value of an investment for a given period.
PPMT(rate, per, nper, pv, [fv], [type])
Rate – The annual interest rate per period.
Per – The number of periods that must be from 1 to nper.
Nper – The total number of payment periods in an investment/ annuity.
Pv – The present value of the annuity/ investment.
[fv] – The optional argument used to specify the future value of the annuity, if omitted [fv] takes 0 as the default value.
[type] – The optional argument used to indicate when payment will due:
|Set type equal to||If payments are due|
|0 or omitted||At the end of the period|
|1||At the beginning of the period|
Suppose, you invest $10,000 in an annuity, which has the annual discount rate of 11% and will expire after three years.
#VALUE! appears if any supplied argument is non- numeric.
#NUM! occurs when the number of periods (per argument) is less than zero or greater than (nper argument) the total number of payment periods in an investment/ annuity.