Financial Functions in Excel: Difference between revisions

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  PMT(interest_rate, number_of_payments, principal, [future_value], [type])
  PMT(interest_rate, number_of_payments, principal, [future_value], [type])
=== interest_rate===
The interest rate per period. For example, if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month is 10%/12, or 0.83%.


==PV==
==PV==

Revision as of 04:34, 4 June 2020

Internal

Interest Payment

PMT

Calculates the payment for a loan based on constant payments and a constant interest rate.

PMT(interest_rate, number_of_payments, principal, [future_value], [type])

interest_rate

The interest rate per period. For example, if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month is 10%/12, or 0.83%.

PV

Calculates the present value of a loan or an investment, based on a constant interest rate. You can use PV with either periodic, constant payments (such as a mortgage or other loan), or a future value that's your investment goal.