How to calculate car payment in Excel?
Understand the Problem
The question is asking for a method to calculate car payments using Excel, likely searching for a formula or function to use within the software.
Answer
Use the PMT function in Excel.
The PMT function in Excel can be used to calculate monthly car loan payments.
Answer for screen readers
The PMT function in Excel can be used to calculate monthly car loan payments.
More Information
The PMT function in Excel calculates the payment for a loan based on constant payments and a constant interest rate. The formula is =PMT(rate, nper, pv, [fv], [type]) where 'rate' is the interest rate per period, 'nper' is the total number of payments, and 'pv' is the present value (the loan amount).
Tips
A common mistake is to use the annual interest rate instead of the monthly interest rate in the PMT function. Always divide the annual rate by 12.
Sources
- How to Calculate a Car Loan in Excel - wikiHow - wikihow.com
- PMT function - Microsoft Support - support.microsoft.com
- Using Microsoft Excel to estimate your car payments - Credit Repair - creditrepair.com
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