Using the PPMT() function

In this exercise, you will be using the same loan as in the prior example; only in this example, you will be using the PPMT() function to calculate the first 5 and last 5 payments on a loan.

This loan has:

$700,000 principal.
7% annual rate, paid monthly.
5 year amortization rate, monthly payments.

And remember put a negative sign before the PPMT() function!

This exercise is part of the course

Loan Amortization in Google Sheets

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Exercise instructions

Fill in the proper principal payments in cells D8:D17 using the PPMT() function.
You must use the PPMT() function to calculate the principal - do not just calculate the principal by subtracting interest from the payment!
Make sure to refer to the cells containing the opening balance, interest rate, and amortization periods using absolute cell referencing.
Do not refer to the rows with the period number using absolute referencing - refer to cell A8 as $A8 not $A$8.

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