PMT (payment)
PMT Function
Computes the payment for a loan based on constant payments and a constant interest rate.
Syntax
PMT(scalar Rate, scalar NumberOfPeriods, scalar PresentValue, scalar FutureValue, scalar PayBeginOfPeriod)
Arguments
| Argument | Description |
|---|---|
scalar Rate | Interest rate per period (eg., when working with monthly payments on an investment with an annual rate of 12%, enter 1% as the monthly rate) |
scalar NumberOfPeriods | Total number of payments over the life of the investment (eg., monthly payments on a 3-year loan would have 36 periods; annual payments on the same loan would have 3 periods) |
scalar PresentValue | Present value or the total amount the investment is worth now |
scalar FutureValue | Future value or the total amount after the last payment is made |
scalar PayBeginOfPeriod | Whether payment is made at beginning of period, where 1=true, payment is made at beginning of period and 0=false, payment is NOT made at beginning of period (that is, payment is made at end of period) |
Examples:
PMT((7.5/100)/12, 24, 5000, 0, 0)
Returns the monthly loan payment on a $5000 loan at an annual rate on 7.5%. The loan is paid off in 2 years. All the payments are made at the end of the period.