To use the PMT function in Microsoft Excel, follow these steps: Steps to Use the PMT Function: Open Excel : Open your Excel workbook where you want to calculate the payment. Select a Cell : Click on the cell where you want the result (monthly payment). Enter the PMT Function : Use the formula syntax: =PMT(rate, nper, pv, [fv], [type]) Input Arguments : rate : Interest rate per period (e.g., for a monthly rate, divide the annual rate by 12). nper : Total number of payment periods. pv : Present value (loan amount or investment). fv (optional) : Future value, usually 0 for loans. type (optional) : Payment timing: 0 (default): End of the period. 1: Beginning of the period. Press Enter : Excel will calculate and display the periodic payment. Example 1: Monthly Loan Payment Problem: You take a loan of $15,000 with an annual interest rate of 5%, to be repaid over 3 years (36 months). What is the monthly payment? Steps: Select a cell and enter: =PMT(5%/12, 3*12, -...
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