The CUMPRINC function in Excel computes the cumulative payment on the principle of a loan or investment over two given time periods.
Syntax:
=CUMPRINC( rate, nper, pv, start_period, end_period, type )
Parameter:
rate:
nper:
pv:
start_period:
The number of the first period over which the main payment is to be computed (must be an integer between 1 and nper).
end_period:
type:
1 indicates that the payment is made at the beginning of the period.
Example :
The spreadsheet below demonstrates the Excel Cumprinc function being used to determine the cumulative payment on the principle for each year of a $50,000 loan that will be paid off over 5 years. The interest is levied at a rate of 5% per year, and the loan payment is due at the end of each month.
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