When you take out a loan, you or your accountant might need to know how much interest you paid for a given period. If you borrow $250,000 for some facility upgrades, you might be able to write off some or all of the interest paid for a given month, quarter, or year. You can discover how much interest you paid on a loan by using the ISPMT function.
- When you take out a loan,…you or your accountant might need to know…how much interest you paid for a given period.…If you borrow $500,000 for some facility upgrades,…for example, you might be able to write off some…or all of the interest paid for a given month,…quarter, or year.…You can discover how much interest you paid…on a loan by using the ISPMT function.…My sample file is InterestInPeriod_01_04…and you can find it in the chapter 1 folder…of your exercise files collection.…
Like I said, I want to calculate the interest…that was generated by an investment, or in this case,…that I need to pay for a loan that I took out.…I need to know several different pieces of information.…The first is the interest rate that my bank is charging me.…That's here in C3.…Next is the period, that is, which payment within the loan…I'm calculating the interest for.…That's in C4.…In C5, I have the total number of periods.…In this case, 36, which for a monthly loan…would be three years.…
And then the present value, or the amount that I borrowed,…
Author
Curt Frye
Released
10/7/2016Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
- Analyzing simulation results
Skill Level Intermediate
Duration
Views
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Introduction
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Welcome58s
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1. Analyzing Loans, Payments, and Interest
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2. Calculating Depreciation
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3. Determining Values and Rates of Return
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4. Calculating Bond Coupon Dates and Security Durations
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5. Calculating Security Prices and Yields
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6. Analyzing Simulation Results
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Conclusion
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Next steps1m 12s
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Video: Calculating the interest paid during a specific period (ISPMT)