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how to use pmt formula. Rate required argument The interest rate of the loan. Create one column of all possible interest rates and an empty column for the payment amounts.
How To Use Excel Pmt Function Excel Loan Amount Workbook from br.pinterest.com
As the compounding periods are monthly 12 we divided the interest rate by 12. The PPMT function in Excel calculates the principal part of the payment. PMT stands for payment hence the functions name.
To estimate what your payment will be for different interest rates you can use the PMT function in Excel.
For example if you are applying for a two-year car loan with an annual interest rate of 7 and the loan amount of 30000 a PMT formula can tell you what your monthly payments will be. It is also termed. PMT PV x PV FV 1 r n -1 x -r 1 b. Pv required argument The present value or total amount that a series of future payments is worth now.
