Owner manual

Chapter 6 Financial Functions 111
 num-periods: The number of periods. num-periods is a number value and must be
greater than or equal to 0.
 present-value: The value of the initial investment, or the amount of the loan or
annuity. present-value is a number value. At time 0, an amount received is a positive
amount and an amount invested is a negative amount. For example, it could be an
amount borrowed (positive) or the initial payment made on an annuity contract
(negative).
 starting-per: First period to include in the calculation. starting-per is a number value.
 ending-per: Last period to include in the calculation. ending-per is a number value
and must be greater than 0 and also greater than starting-per.
 when-due: Species whether payments are due at the beginning or end of each
period.
end (0): Payments are due at the end of each period.
beginning (1): Payments are due at the beginning of each period.
Usage Notes
If  settle is before rst, the function returns the interest accrued since issue. If settle is
after rst, the function returns the interest accrued since the coupon payment date
that most immediately precedes settle.
Use ACCRINTM for a security that pays interest only at maturity. Â
Examples
It is generally understood that the amount of interest paid on a loan is higher in the early years, as
compared to the later years. This example demonstrates just how much higher the early years can
be. Assume a mortgage loan with an initial loan amount of $550,000, an interest rate of 6%, and a
30-year term.
The CUMIPMT function can be used to determine the interest for any period. In the following table,
CUMIPMT has been used to determine the interest for the rst year (payments 1 through 12) and for
the last year (payments 349 through 360) of the loan term. The function evaluates to $32,816.27 and
$1,256.58, respectively. The amount of interest paid in the rst year is more than 26 times the amount
of interest paid in the last year.
periodic-rate num-periods present-value starting-per ending-per when-due
=CUMIPMT (B2,
C2, D2, E2, F2,
G2)
=0.06/12 360 =550000 1 12 0
=CUMIPMT (B2,
C2, D2, E3, F3,
G2)
349 360