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PMT Function
PMT is a function of the financial of Excel.
Serve calculate the payment amount for a loan. The calculation is based on a fixed payment and fixed interest rate.
The form of the function PMT: PMT (rate, nper, pv, fv, type).
rate is the interest rate
nper is the number of periods (number) in payment all for the loan.
pv is the value of pv (present value is the present value) of the investment: the current value of all the installment payments.
fv is the future value (Fv-future value) or the amount of money you need to balance after the last payment. If fv is omitted, it is assumed to be 0 (for example. Future Value of loans with a value of 0).
type is a logical value that specifies a payment schedule.
Related functions include PMT Function fv, ipmt, nper, ppmt, pv, rate.
Example of PMT Function
1 Select cells A2: A6, type Rate and press Enter.
2 Type "Nper" and press Enter.
3 Type "Pv" and press Enter.
4 Type "Fv" and press Enter.
5 Type "Type" and press Enter.
6 Click on cell A8 and type (1 + i) ^ n.
Step 7: Select cells B2: B5 and type 4% and press Enter.
8 Type 120 and press Enter
9. type -1000000, then press Enter
10 type 0 and press Enter
11.-click cell B8, type = (1 + b2 / 12) ^ b3 and press Enter to display the value 1.490832682.
12.-click cell B9, type = b4 * (b2 / 12 * b8 / (b8-1)) - b5 * (b2 / 12 / (b8-1)) and press Enter to display the value 10124.51382.
13 Click cell B11 and type = pmt (b2 / 12, b3, b4) and press Enter to display the $ 10,124.51.
