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payadv

Periodic payment given number of advance payments

Description

example

Payment = payadv(Rate,NumPeriods,PresentValue,FutureValue,Advance) computes the periodic payment given a number of advance payments.

Examples

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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

Input Arguments

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Lending or borrowing rate per period, specified as a decimal. The Rate must be greater than or equal to 0.

Data Types: double

Number of periods in the life of the instrument, specified as an integer.

Data Types: double

Present value of the instrument, specified as a numeric.

Data Types: double

Future value or target value to be attained after NumPeriods periods, specified as a numeric.

Data Types: double

Number of advance payments, specified as an integer. If the payments are made at the beginning of the period, add 1 to Advance.

Data Types: double

Output Arguments

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Periodic payment, returned as the periodic payment given a number of advance payments.

Introduced before R2006a