CUMPRINC Excel Formula

Excel is a well known spreadsheet program. Millions of people and offices are using this spreadsheet program to store their valuable data. Its different features and functions allow the administrator and users retrieve and calculate the data easily. There are many built-in functions in the Excel program. Some of them are used widely and some of the functions are used rarely. A function is a common term in mathematics. It provides relationship between the input and output. In the Excel programs there are functions which are a kind of small programs that provide certain results depending on the given inputs.

Cum Principal function CUMPRINC is an Excel function which can provide the output of cum principle payment. The function’s syntax is as follows –

CUMPRINC (rate,nper,pv,start_period,end_period,type)

One thing is very important when you will apply any function in your database, the syntax should be followed properly; not a single character can be changed. In the CUMPRINC function – ‘rate’ denotes the interest rate; ‘nper’ denotes total number of the payment periods; ‘pv’ denotes present value; ‘start_period’ denotes the first period; ‘end_period’ denotes the last period; and ‘type’ denotes the payment timing. The type will be zero (0) for the payment at the period’s end; the type will be one (1) for the payment at the period’s beginning.

The administrator or the user who will use this function in a database, he/she should be familiar enough with the terms used in the function. Consider that a person who will have to pay monthly payments based on his/her four-year loan where the interest rate is 12 percent. Then for rate he/she should write 12%/12; and for nper he/she should write 4*12. If the person has to pay annual payments, then for rate write 12% and for nper write 4. Another important thing is that the terms type, end_period, start_period, nper are shaved to integers. In different cases, the CUMPRINC function will return the #NUM! error. If the pv ? 0, nper ? 0, or rate ? 0, then the function will return the #NUM! error. The function will also return the error value if the end_period < 1, start_period < 1, or the end_period < start_period. Other values without the 0 and 1 for type will also return the error value.

The function CUMPRINC will allow you to find out the principal paid without generating the amortization tables. For clearer understanding another example can be stated here. If the present value or pv is 100000, number of periods is 5, rate is 11 percent, start period is the year 2, end period is the  year 3, and the payment type is at the end that means type = 0; then you will get an answer 37607. Thus the function can help the administrator or the user to work out the complex calculation. When the function will be used in a database program then it will work out thousands of calculations within moments. The functions can be used with other functions to work out more complex functions, but the syntax should be accurate as stated in the main program.

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