INT_PAYMENT Function

Evaluates the interest payment for an investment for a given period.

Usage

result = INT_PAYMENT(rate, period, n_periods, present_value, future_value, when)

Input Parameters

rate—Interest rate.

period—Payment period.

n_periods—Total number of periods.

present_value—The current value of a stream of future payments, after discounting the payments using some interest rate.

future_value—The value, at some time in the future, of a current amount and a stream of payments.

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 interest payment for an investment for a given period. If no result can be computed, NaN is returned.

Input Keywords

Double—If present and nonzero, double precision is used.

Discussion

Function INT_PAYMENT computes the interest payment for an investment for a given period. It is computed using the following:

 

Example

In this example, INT_PAYMENT computes the interest payment for the second year of a 25-year $100,000 loan with an annual interest rate of 8%. The payment is made at the end of each period.

PRINT, INT_PAYMENT(0.08, 2, 25, 100000.00, 0.0, 0)

; PV-WAVE prints: -7890.57