Apple iWork '09 User Manual

Page 136

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).

future-value: An optional argument that represents the value of the investment
or remaining cash value of the annuity (positive amount), or the remaining loan
balance (negative amount), after the final payment. future-value is a number value.
At the end of the investment period, an amount received is a positive amount and
an amount invested is a negative amount. For example, It could be the balloon
payment due on a loan (negative) or the remaining value of an annuity contract
(positive). If omitted, it is assumed to be 0.

when-due: An optional argument that specifies whether payments are due at the
beginning or end of each period. Most mortgage and other loans require the first
payment at the end of the first period (0), which is the default. Most lease and rent
payments, and some other types of payments, are due at the beginning of each
period (1).
end (0 or omitted): Payments are due at the end of each period.
beginning (1): Payments are due at the beginning of each period.

Example

In this example, PPMT is used to determine the principal portion of the first payment of the third
year of the loan term (payment 25) given the loan facts presented. The function evaluates to
approximately –$687.80, which represents the principal portion of payment 25.

periodic-rate

period

num-periods

present-value

future-value

when-due

=PPMT(B2, C2,
D2, E2, F2, G2)

=0.06/12

=10*12

200000

-100000

Related Topics
For related functions and additional information, see: