Excel: payment against principal

Tutoring financial math, amortization arises. The tutor mentions the Excel function for it.

Example: For a 25-year loan of $100,000 at 4%, compounded monthly with monthly payments, what is the amount against the principal of the 101st payment?

Solution:

Using Excel, it would be =ppmt(4%/12, 101, 300, 100000), which gives -271.30 (meaning a reduction of 271.30 against the principal).

Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.

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