payadv (Financial Toolbox)

Periodic payment given number of advance payments.

Syntax

pmt = payadv(rate, nper, pv, fv, adv)

Arguments

rate: Lending or borrowing rate per period. Enter as a decimal fraction. Must be greater than or equal to 0.

nper: Number of periods in the life of the instrument.

pv: Present value of the instrument.

fv: Future value or target value to be attained after nper periods.

adv: Number of advance payments. If the payments are made at the beginning of the period, add 1 to adv.

Description

pmt = payadv(rate, nper, pv, fv, adv)

returns the periodic payment given a number of advance payments.

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. Using this data:

pmt = payadv(0.1/12, 12, 1000, 0, 3)

returns

pmt =
         85.94

for the periodic payment.