*! version 1 jan2013
help payper

Title

payper -- Returns the periodic payment and the entire schedule of a loan or annuity

Syntax

payper
, pv(#) nper(#)
frequency(timeunit)
rate(#)
[ options ]

Main
pv(#) Present value of the instrument (positive number)

nper(#) Number of payment periods in the life of the instrument (positive integer)

frequency:(timeunit) Time unit of payments (m, q, h, y)

rate(#) Nominal annual interest rate (in decimal form)

Options
result(mymatrix) Set the payment's schedule matrix name

timeunit definition

m monthly payments

q quarterly payments

h halfyearly payments

y yearly payments

Description

payper Returns the periodic constant payment of a loan or annuity (based on a constant interest rate). payper generates
a five column matrix (rows = nper) containing the entire schedule of (end of period) periodic constant payments
distinguishing between: period number, principal, interest, balance and payment.

Options

pv(#) Present value of the loan or instrument.

nper(#) Number of payment periods in the life of the instrument.
For example, if you get a five-year loan and make monthly payments, the loan will have 5*12 = 60 periods. The formula nper(60).

frequency:(timeunit) Time unit of payments (m, q, h, y).
Used to convert the annual interest rate into a periodic rate.

rate(#) Nominal annual interest rate (in decimal form). i.e. an annual 5.24% interest rate should be written 0.0524.

result(mymatrix) Set the payment's schedule matrix name saved in results, default is matpay.

Examples

. payper, pv(10000) nper(60) frequency(m) rate(.1125)

. payper, pv(1500) nper(5) frequency(y) rate(.125) res(loan1)

. mat list r(loan1)

Saved results

payper saves the following in r():

Scalars

r(pv) present value

r(nper) total number of payment periods

r(freq) number of payment within a year

r(iy) annual interest rate

r(PMT) periodic constant payment

Matrices

r(matpay) schedule of payments

Author

Maximo Sangiacomo
Email: msangia@hotmail.com