PAYMENT Function

The PAYMENT function calculates the amount due in each payment period to reach the future value by the end of the term.

If you know the rate, term, present value, future value and type of a savings scheme or loan you can use the PAYMENT function to work out the amount to apply in each payment period to reach the full amount.

Function name	PAYMENT
Usage model	PAYMEMENT ( rate:NUM, term:NUM, present value:NUM,future value:NUM, type:NUM )
Parameters	This function requires you to replace two of five parameters (three are optional):
rate: NUM	The function uses this value as the interest rate per payment period.
term: NUM	The function uses this value as the total number of payment periods.
present value: NUM	(Optional) This value represents the current value of the future amount; the default is zero.
future value: NUM	(Optional) This represents the value after the last payment period, the default is zero.
type: NUM	(Optional) This value can be entered as a 0 or a 1, 0 meaning payments are due at the end of a payment period and 1 meaning payments are due at the beginning of a payment period. The default is zero.
Result	A number value.

Example

For example, if you have an annual rate of 7.5% over 3 years and you know that the future value is $4,023.1381682 then you can work out the monthly payment by using the following figures:

SET RateNUM TO 0.00625 //(0.075/12 to find the monthly rate)
SET TermNUM TO 36
SET PresentValueNUM TO 0
SET FutureValueNUM TO 4023.1381682
SET TypeNUM TO 0

PAYMENT ( 0.0625, 36, 0, 4023.1381682, 0 )

This produces the result of the PAYMENT being approxomately -99.99

See Also:
RATE
TERM
PRESENT VALUE
FEATURE VALUE

Download

After you download the example template, you can import the template to any workspace to see this example code in action.