How to: Use the PMT() function.
Solution:
Select the cell where the result of the PMT() function should be displayed. Enter =PMT(rate, nper, pv, fv, type) and press ENTER on the keyboard.
NOTE: The PMT() function returns the periodic payment for an annuity, such as a mortgage or loan, based on a constant interest rate, the number of payment periods, and constant payments.
1) Select the cell where the result of the PMT() function is to be displayed.
2) Type = (an equal sign).
3) Type PMT.
4) Type ( (left parenthesis).
5) Type the interest rate per period (rate).
6) Type , (a comma).
7) Type the total number of payment periods (nper).
8) Type , (a comma).
9) Type the present (starting) value of the loan or mortgage (pv).
10) Type , (a comma).
11) (Optional) Type the future value (fv -- the ending value at loan or mortgage completion).
NOTE: If fv is omitted, it is assumed to be 0.
12) (Optional) Type , (a comma).
13) (Optional) Type the type of loan or mortgage (type).
NOTE: The type is either 0 or 1. If type is omitted, it is assumed to be 0, which indicates payments are due at the end of the period. 1 indicates payments are due at the beginning of the period.
14) Type ) (right parenthesis).
EXAMPLE of the PMT() function: =PMT(4.9%/12, 36, 5000, 0), 1)
15) Press ENTER.
