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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!

Cet exercice fait partie du cours

Loan Amortization in Google Sheets

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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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