- Function InvestmentConstantCumulativePrincipalPayment(PresentValue, FutureValue, NumberPeriods, StartPeriod, EndPeriod, InterestRate, Type)
InvestmentConstantCumulativePrincipalPayment
The function InvestmentConstantCumulativePrincipalPayment
returns
the cumulative principal payment for the specified interval for an
investment based on periodic, constant payments and a constant interest
rate. Every periodic payment can be divided in two parts: an interest
payment and a principal payment.
InvestmentConstantCumulativePrincipalPayment(
PresentValue, ! (input) numerical expression
FutureValue, ! (input) numerical expression
NumberPeriods, ! (input) numerical expression
StartPeriod, ! (input) numerical expression
EndPeriod, ! (input) numerical expression
InterestRate, ! (input) numerical expression
Type ! (input) numerical expression
)
Arguments
- PresentValue
The total amount that a series of future payments is worth at this moment. PresentValue must be a real number.
- FutureValue
The cash balance you want to attain after the last payment is made. FutureValue must be a real number.
- NumberPeriods
The total number of payment periods for the investment. NumberPeriods must be a positive integer.
- StartPeriod
The starting period of the interval for which you want to compute the cumulative interest payment. StartPeriod must be an integer in the range \(\{ 1, NumberPeriods \}\).
- EndPeriod
The ending period of the interval for which you want to compute the cumulative interest payment. EndPeriod must be an integer in the range \(\{ StartPeriod, NumberPeriods\}\).
- InterestRate
The interest rate per period for the investment. InterestRate must be a numerical expression in the range \((-1, 1)\).
- Type
Indicates when payments are due. \(Type = 0\): Payments are due at the end of each period. \(Type = 1\): Payments are due at the beginning of each period.
Return Value
The function
InvestmentConstantCumulativePrincipalPayment
returns the sum of the principal payments for the periods in the specified interval.
Note
This function can be used in an objective function or constraint and the input parameters PresentValue, FutureValue and InterestRate can be used as a variable.
The function
InvestmentConstantCumulativePrincipalPayment
is similar to the Excel functionCUMPRINC
.
Example
How much of the payments during the first half of the loan is pay off?
_p_payoffFirstFiveYears :=
InvestmentConstantCumulativePrincipalPayment(
PresentValue : 10,
FutureValue : 0,
NumberPeriods : 10,
StartPeriod : 1,
EndPeriod : 5,
InterestRate : 0.1,
type : 0);
block where single_column_display := 1, listing_number_precision := 6 ;
display _p_payoffFirstFiveYears ;
endblock ;
That is actually less than the interest pay!
_p_payoffFirstFiveYears := -3.830669 ;
References
General equations for investments with constant, periodic payments.