Financial Functions
Advanced
IPMT Function
Calculate the interest portion of a loan payment.
Task:
Calculate the interest paid in month 12 of a 5-year loan at 6% annual interest with monthly payments.
Learning Objectives:
- Learn IPMT function
- Understand loan amortization
- Practice interest calculations
Hints
Solve without hints for +5 XP
The data in this exercise
This is the grid you start with. Cell references in the task — B6, C2 — point at the row numbers and column letters below.
| A | B | |
|---|---|---|
| 1 | Parameter | Value |
| 2 | Rate | 0.004166666666666667 |
| 3 | Per | 1 |
| 4 | Nper | 360 |
| 5 | Pv | 200000 |
| 6 | Fv | 0 |
| 7 | IPMT |
What this exercise teaches (contains the answer)
IPMT calculates the interest portion of a specific payment in a loan with constant periodic payments.