Excel Formula Declining Balance. Interest PrincipalRateTerm This means that you have to multiply the principal by the rate and by the term. But Microsoft Excel has a special function for this - the IPMT function.
In this article Ill explain the problems with the basic running balance formula and provide two robust solutions.
Calculate the total amount accumulated using the compound interest formula. Personal Use Not for resale or distribution. But Microsoft Excel has a special function for this - the IPMT function. So after every instalment your principal amount decreases which in turn reflects on the effective interest rate.
