An example of what the solve for n formula tries to answer is How long will it take me to pay off a balance of a at a rate of b by making periodic payments of c. In Excel you could calculate the monthly payment using the following formula. Microsoft Excel has a number of built-in functions for amortization formulas.
The solve for n or number of periods formula shown above is used to determine the number of periods on an annuity using the present value periodic payment and periodic rate.
The payment returned by PMT includes principal and interest but will not include any taxes reserve payments or fees. P V P M T 1 1 i k n i k PV 429000 K 12. The PMT function below calculates the quarterly payment. Formula How the Payment amount is calculated Payments calculate through a.