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CUMPRINC

The CUMPRINC function in Google Sheets calculates the cumulative principal paid over a range of payment periods for an investment based on constant-amount periodic payments and a constant interest rate. Use this powerful function to gain insights into your investment and track the cumulative principal paid.

Function Syntax and Parameters

Syntax: CUMPRINC(rate, number_of_periods, present_value, first_period, last_period, end_or_beginning)

Parameters:

  • rate: The interest rate per period.
  • number_of_periods: The total number of payment periods.
  • present_value: The present value of the investment or loan.
  • first_period: The number of the first payment period.
  • last_period: The number of the last payment period.
  • end_or_beginning: A boolean value that specifies whether payments are due at the end or beginning of each period.

Step-by-Step Tutorial

  1. Using CUMPRINC function:
    • Example: =CUMPRINC(0.08, 5, 5000, 1, 3, 0)
    • Result: This example calculates the cumulative principal paid for the first three payment periods of a $5000 loan with an interest rate of 8% per period.

Use Cases and Scenarios

  1. Loan Analysis: Calculate the cumulative principal paid for different payment periods.
  2. Investment Tracking: Monitor the cumulative principal paid over time.
  3. Financial Planning: Evaluate the impact of different payment scenarios on the cumulative principal paid.

Related Functions

  • CUMIPMT: Calculates the cumulative interest paid over a range of payment periods for an investment.
  • PMT: Calculates the periodic payment for an investment based on constant-amount periodic payments and a constant interest rate.

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