VB.NET Language in a Nutshell

2017-07-07 02:10:07

PPmt Function

Class

Microsoft.VisualBasic.Financial

Syntax

PPmt( rate , per , nper , pv [, fv [, due ]])

rate (required; Double): The interest rate per period.
per (required; Double): The period for which a payment is to be computed.
nper (required; Double): The total number of payment periods.
pv (required; Double): The present value of a series of future payments.
fv (optional; Object): The future value or cash balance after the final payment. If omitted, the default value is 0.
due (optional; DueDate enumeration): A value indicating when payments are due. It can be either DueDate. EndOfPeriod (or 0), for payments due at the end of the period, or DueDate.BegOfPeriod (or 1), for payments due at the beginning of the period. The default value is DueDate.EndOfPeriod .

Return Value

A Double representing the principal paid in a given payment

Description

Computes the payment of principal for a given period of an annuity, based on periodic, fixed payments and a fixed interest rate. An annuity is a series of fixed cash payments made over a period of time. It can be either a loan payment or an investment.

Rules at a Glance

The value of per can range from 1 to nper .

If pv and fv represent liabilities, their value is negative; if they represent assets, their value is positive.

If fv is omitted, its default value of 0 is used.

If due is omitted, the default value of 0 (reflecting payments at the beginning of each period) is used.

Example

See the example for the IPmt Function entry.

Programming Tips and Gotchas

rate and nper must be expressed in the same time unit. That is, if nper reflects the number of monthly payments, rate must be the monthly interest rate.

The interest rate is a percentage expressed as a decimal. For example, if nper is the total number of monthly payments, an annual percentage rate (APR) of 12% is equivalent to a monthly percentage rate of 1%. The value of rate is therefore .01.