Apple iWork '09 - Manual (Page 111)

Chapter 6 Financial Functions 111
 num-periods: The number of periods. num-periods is a number value and must be
greater than or equal to 0.
 present-value: The value of the initial investment, or the amount of the loan or
annuity. present-value is a number value. At time 0, an amount received is a positive
amount and an amount invested is a negative amount. For example, it could be an
amount borrowed (positive) or the initial payment made on an annuity contract
(negative).
 starting-per: First period to include in the calculation. starting-per is a number value.
 ending-per: Last period to include in the calculation. ending-per is a number value
and must be greater than 0 and also greater than starting-per.
 when-due: Specifies whether payments are due at the beginning or end of each
period.
end (0): Payments are due at the end of each period.
beginning (1): Payments are due at the beginning of each period.
Usage Notes
If  settle is before first, the function returns the interest accrued since issue. If settle is
after first, the function returns the interest accrued since the coupon payment date
that most immediately precedes settle.
Use ACCRINTM for a security that pays interest only at maturity.
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Examples
It is generally understood that the amount of interest paid on a loan is higher in the early years, as
compared to the later years. This example demonstrates just how much higher the early years can
be. Assume a mortgage loan with an initial loan amount of $550,000, an interest rate of 6%, and a
30-year term.
The CUMIPMT function can be used to determine the interest for any period. In the following table,
CUMIPMT has been used to determine the interest for the first year (payments 1 through 12) and for
the last year (payments 349 through 360) of the loan term. The function evaluates to $32,816.27 and
$1,256.58, respectively. The amount of interest paid in the first year is more than 26 times the amount
of interest paid in the last year.
periodic-rate num-periods present-value starting-per ending-per when-due
=CUMIPMT (B2,
C2, D2, E2, F2,
G2) =0.06/12 360 =550000 1 12 0
=CUMIPMT (B2,
C2, D2, E3, F3,
G2) 349 360