s

• Payment function


  Used to pay back loans
• PMT


  One of the financial functions, calculates the payment for a loan based on constant payments and a constant interest rate
• PMT function

  1. rate

  2. nper

  3. pv

  4. fv

  5. type
• Rate

  Interest rate (annually)
• Nper


  Total number of payments
• Pv

  The PV function returns the present value/principal value(amount owed) of an investment
• Fv


  A financial function that returns the future value of an investment
• Type


  Beginning of period [1] or End of period [0]
• Fv and Type are optional
• PMT function example


  • Rate - 5%
  • Borrowed (PV) - $30,000 (5% of %30,000 is %1,500) ($30,000 + $1500 = $31,500)
  • Time to repay - 1 year
  • Number of payments (Nper) : 12 payments ($31,500 ➗ 12 = $2,625 - Monthly Pay)
  • Fv = $31,500
  • Type : If not used in the syntax, excel will assume its 0/End of period
• PMT function syntax


  =PMT(5%,12,30000,31500,0)
• To get a positive result, we put a negative sign in front of the PV