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It is the Principal Payment function. It returns the payment on the principal for a given period for an investment based on periodic, constant payments and a constant interest rate.

PPMT( rate, per, nper, pv, fv, type )

Rate is the interest rate per period.

Per specifies the period and must be in the range 1 to nper.

Nper is the total number of payment periods in an annuity.

Pv is the present value- the total amount that a series of future payments is worth now.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 or 1 and indicates when payments are due.

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