Returns the number of periods for an annuity based on periodic, constant payments and a constant interest rate.
NPer(rate, pmt, pv[, fv[, type]])
The NPer function has these named arguments:
|
Part |
Description |
|
rate |
Interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083. |
|
pmt |
Payment to be made each period. Payments usually contain principal and interest that doesn’t change over the life of the annuity. |
|
pv |
Present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make. |
|
fv |
Future value or cash balance you want after you’ve made the final payment. For example, the future value of a loan is $0 because that’s it value after the final payment. However, if you want to save $50,000 for your child’s education over 18 years, then $50,000 is the future value. If omitted, 0 is assumed. |
|
type |
Number indicating when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed. |
An annuity is a series of constant cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).
For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.
This example uses the NPer function to return the number of periods over which payments must be made to pay off a loan whose value is contained in PVal. Also provided are the interest percentage rate per period (APR / 12), the payment (Payment), the future value of the loan (FVal), and a number that indicates whether the payment is due at the beginning or end of the payment period (PayType).
Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made.= 0 ' Usually 0 for a loan.= InputBox("How much do you want to borrow?")= InputBox("What is the annual percentage rate of your loan?")APR > 1 Then APR = APR / 100 ' Ensure proper form.= InputBox("How much do you want to pay each month?")= MsgBox("Do you make payments at the end of month?", vbYesNo)PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD= NPer(APR / 12, -Payment, PVal, FVal, PayType)Int(TotPmts) <> TotPmts Then TotPmts = Int(TotPmts) + 1"It will take you " & TotPmts & " months to pay off your loan."