The PMT function equals the sum of the IPMT and PPMT results.

Question

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The PMT function in Excel calculates the total payment for a loan based on a constant interest rate, constant payments, and a constant loan amount. The IPMT function calculates the interest portion of a payment, while the PPMT function calculates the principal portion of a payment. Therefore, the sum of the IPMT and PPMT functions should equal the total payment calculated by the PMT function.

The PMT Function Equals the Sum of the IPMT and PPMT