**Basic Description**

The Excel IPMT function calculates the interest payment, during a specific period of a loan or investment that is paid in constant periodic payments, with a constant interest rate.

The syntax of the function is:

IPMT( rate, per, nper, pv, [fv], [type] )Where the arguments are as follows:

rate - The interest rate, per period.

per - The period for which the interest payment is to be calculated (must be an integer between 1 and nper).

nper - The number of periods over which the loan or investment is to be paid.

pv - The present value of the loan / investment.

[fv] - An optional argument that specifies the future value of the loan / investment, at the end of nper payments. If omitted, [fv] takes on the default value of 0.

[type] - An optional argument that defines whether the payment is made at the start or the end of the period.

The [type] argument can have the value 0 or 1, meaning:

0 - The payment is made at the end of the period;

1 - The payment is made at the start of the period.

If the [type] argument is omitted, it takes on the default value of 0 (denoting payments made at the end of the period).

In Java this can be represented with following function:

A high precision function using BigDecimal is:

Full source code can be found at: ExcelFunctions.java

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