How to use the PMT function in Excel?
Understand the Problem
The question is asking for guidance on how to utilize the PMT function in Excel. The PMT function is used to calculate the payment for a loan based on constant payments and a constant interest rate. The inquiry suggests that the user is looking for instructions or examples to effectively employ this function in their spreadsheets.
Answer
=PMT(rate, nper, pv, [fv], [type])
The final answer is =PMT(rate, nper, pv, [fv], [type]).
Answer for screen readers
The final answer is =PMT(rate, nper, pv, [fv], [type]).
More Information
The PMT function calculates the payment for a loan based on constant payments and a constant interest rate.
Tips
A common mistake is to misrepresent the rate. For yearly rates, divide by 12 for monthly payments, or multiply for different periods.
Sources
- Use the PMT function in Excel to calculate loan payments - Microsoft Support - support.microsoft.com
- How to Use PMT Function in Excel - Excel Easy - excel-easy.com
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