PRINCPER

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moony marouane - 29 Dec 2005 15:34 GMT

Hi Everybody

I'd like to know what is the expression that PRINCPER function uses, cause I
need it urgently.
Let me take this as an example : PRINCPER(11,95%/12;1;32;40000) how do we
get : 929,28, what is the the calculation or the expression??

Many thanks in advance
Moony

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Niek Otten - 29 Dec 2005 15:56 GMT

The English equivalent of PRINCPER is PPMT, member of a group of related
financial functions, all using the same basic formula.
The formula can be found in HELP under FV, That is the French VC function.

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Kind regards,

Niek Otten

> Hi Everybody
>
[quoted text clipped - 6 lines]
> Many thanks in advance
> Moony

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moony marouane - 29 Dec 2005 16:11 GMT

Many thanks for your help

But I went to help, and I found just examples like :
VC(0,5%; 10; -200; -500; 1) equal to 2 581,40 F

VC(1%; 12; -1000) equal to 12 682,50 F

VC(11%/12; 35; -2000; ; 1) equal to 82 846,25 F

And not how they got the results, I mean the operations (+ / - *)

Many thanks again

> The English equivalent of PRINCPER is PPMT, member of a group of related
> financial functions, all using the same basic formula.
[quoted text clipped - 10 lines]
> > Many thanks in advance
> > Moony

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Niek Otten - 29 Dec 2005 16:21 GMT

Then look at VA

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Kind regards,

Niek Otten

> Many thanks for your help
>
[quoted text clipped - 26 lines]
>> > Many thanks in advance
>> > Moony

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Bernard Liengme - 29 Dec 2005 16:06 GMT

From http://www.cvm.qc.ca/dgirard/H2004/210-appInfo/notes/module14.pdf

INTPER
Calcule le montant des intérêts pour une période

PRINCPER
Calcule le montant du capital pour une période

In English version this is PPMT but I cannot get the same results as you
report!

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Bernard V Liengme
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> Hi Everybody
>
[quoted text clipped - 6 lines]
> Many thanks in advance
> Moony

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joeu2004@hotmail.com - 29 Dec 2005 20:28 GMT

> > Let me take this as an example :
> > PRINCPER(11,95%/12;1;32;40000) how do we
> > get : 929,28

[....]

> In English version this is PPMT but I cannot get the
> same results as you report!

I presume a typo: it should be 36 instead of 32.

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Bernard Liengme - 29 Dec 2005 16:08 GMT

See also page 6 at
http://www.hepho.be/contenu/Cours/verscheure/Fichiers/Excel2.pdf

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Bernard V Liengme
www.stfx.ca/people/bliengme
remove caps from email

> Hi Everybody
>
[quoted text clipped - 6 lines]
> Many thanks in advance
> Moony

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joeu2004@hotmail.com - 29 Dec 2005 20:59 GMT

> I'd like to know what is the expression that PRINCPER
> function uses, cause I need it urgently. Let me take
> this as an example : PRINCPER(11,95%/12;1;32;40000)
> how do we get : 929,28

I assume you mean PRINCPER(11,95%/12;1;36;-40000)
-- that is, 36 instead of 32 and -40000 instead of 40000.
I write "-40000" so that PRINCPER() returns a positive value,
as you wrote.

(Some people might argue that "40000" and "-929.28" are
the correct signs. I prefer to make all financial function
results positive, and I write an explicit "-" when I need that.)

I cannot tell you how Excel computes this internally, but I
think you are interested in the mathematical equations.

First, periodic payment (PMT) is:

PMT = PV*r / (1 - (1+r)^(-n))

where PV is the initial principal ("capital"; 40000), n is the
number of periodic payments (36), and r is the periodic
interest rate (11.95%/12).

Second, the ending balance in a specified period, FV(k), is:

FV(k) = ( PV - PMT*(1 - (1+r)^(-k))/r ) / (1+r)^(-k)

where k is the period number (1,...,n; FV(0) = PV).

Thus, the principal paid in period k (1), PPMT or PRINCPER, is:

PPMT = FV(k) - FV(k-1)

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