Periodic payment given number of advance payments
Compute the Periodic Payment
This example shows how to compute the periodic payment, given a number of advance payments. For example, the present value of a loan is $1000.00 and it will be paid in full in 12 months. The annual interest rate is 10% and three payments are made at closing time.
Payment = payadv(0.1/12, 12, 1000, 0, 3)
Payment = 85.9389
Rate — Lending or borrowing rate per period
Lending or borrowing rate per period, specified as a decimal. The
Rate must be greater than or equal to
NumPeriods — Number of periods in the life of the instrument
Number of periods in the life of the instrument, specified as an integer.
PresentValue — Present value of instrument
Present value of the instrument, specified as a numeric.
FutureValue — Future value or target value attained after
Future value or target value to be attained after
NumPeriods periods, specified as a numeric.
Advance — Number of advance payments
Number of advance payments, specified as an integer. If the payments are
made at the beginning of the period, add
Payment — Periodic payment
Periodic payment, returned as the periodic payment given a number of advance payments.