The PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule.
The syntax for the PMT function is: PMT(interest_rate, number_payments, PV, FV, Type)
interest_rate = interest rate for the loan.
number_payments = number of payments for the loan.
PV = present value or principal of the loan.
FV (optional) = Future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of 0.
Type (optional) = Indicates when the payments are due. Type can be one of the following values:
-- 0 = Payments are due at the end of the period. (default)
-- 1 = Payments are due at the beginning of the period.
If the Type parameter is omitted, the PMT function assumes a Type value of 0.
EXAMPLE:
Find the monthly payment for a $6,400 loan at an annual rate of 8.25%. The loan is paid off in 2 years (ie: 2 x 12). All payments are made at the beginning of the period.
=PMT(8.25%/12, 2*12, 6400, 0, 1)
When you want to get the payment amount for a loan based on an interest rate and a constant payment schedule.
The PMT function.
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The PMT function returns the payment amount for a loan, so it has nothing to do with how dates are displayed. It returns numbers.
Commas.
Use PMT function in the excel sheet.
No, it has five arguments. Two of them are optional.The syntax for the PMT function is:PMT(interest_rate, number_payments, PV, FV, Type)The FV and Type arguments are optional.
The PPMT function returns the amt. of interest in a specified instalment number whereas the PMT function returns the amt. of interest in every EMI payment.
The PMT function in Excel outputs a monthly loan payment amount.
The PMT function in Excel outputs a monthly loan payment amount.
Please explain more clearly
The FV and Type arguments are optional in the PMT function.
There is no single answer to that. It will depend on the calculation you are trying to do. You could use whatever rate is appropriate. The function can use any rate, so that will be based on the particular situation you are working on and what interest rate is specified.