IPMT+Function

The IPMT (rate, per, nper, pv, [fv], [type] function returns the interest paid for a given period of an investment

Rate - the fixed interest rate per period Per - the period for which you want to find the interest Nper - the total number of payments PV - the present value FV - the future value or cash balance Type (optoinal) - the number identifying when the payments are due: 0=the end of the period; 1=the beginning of the period
 * __Terminology__**

When calculating make sure you are consistent about the units you use for specifying "rate" and "nper"; i.e. monthly payments on a 4 year loan at 12% annual interest the rate would be 12%/12 and the Nper would be 4*12; if annual payments are made on the same loan the rate would be 12% and Nper would be 4.

Find the interest payment for a $5,000 investment that earns 7.5% annually for 2 years. The interest payment is calculated for the 8th month and payments are due at the end of each month.
 * __Example__**

The interest is $22.61
 * =IPmt(7.5%/12,8,2*12,5000)**

NOTE: answers will appear as a negative, to change to a positve multiply by -1.