CUM_PRINC Function
Evaluates the cumulative principal paid between two periods.
Usage
result = CUM_PRINC (rate, n_periods, present_value, start, end_per, when)
Input Parameters
rate—Interest rate.
n_periods—Total number of payment periods. n_periods cannot be less than or equal to 0.
present_value—The current value of a stream of future payments, after discounting the payments using some interest rate.
start—Starting period in the calculation. start cannot be less than 1; or greater than end_per.
end_per—Ending period in the calculation.
when—Time in each period when the payment is made, either 0 for at the end of period or 1 for at the beginning of period.
Returned Value
result—The cumulative principal paid between the first period and the last period. If no result can be computed, NaN is returned.
Input Keywords
Double—If present and nonzero, double precision is used.
Discussion
Function CUM_PRINC evaluates the cumulative principal paid between the first period and the last period. It is computed using the following:
where principali is computed from PRINC_PAYMENT for the ith period.
Example
In this example, CUM_PRINC computes the total principal paid for the first year of a 30-year $200,000 loan with an annual interest rate of 7.25%. The payment is made at the end of each month.
PRINT, CUM_PRINC(0.0725 / 12, 12*30, 200000., 1, 12, 0)
; PV-WAVE prints: -1935.73
