Type the Excel function for the interest portion of the SECOND payment on a $20,000, 5-year, 6 % loan, as a positive number.

Answer

=-IPMT(0.06,2,5,20000)

rate, per (the payment number), nper, pv → 987.12: the year-2 opening balance 16,452.07 × 6 %. =-PPMT with the same arguments gives the principal, 3,760.80.

Bigel, Introduction to Financial Analysis (CC BY 4.0) §11.22 (the four-line recipe; half-paid point) — shape only; Excel IPMT/PPMT/FV balance authored fresh; original scenario