PMT Function

N

N Harkawat

Say you take a loan of 1000 and at end of 12 months want to leave a loan
balance of say $400.
How much would you pay in equal instalements in 12 months in order to pay
off 600 of loan and leave 400 ?
FV is that $400
therefore
=PMT(rate/12,12,-1000,400)
 
B

Bernard Liengme

Good answer from N
Sometimes this remaining amount is paid off with a "balloon payment"
 
H

Harlan Grove

N Harkawat wrote...
Say you take a loan of 1000 and at end of 12 months want to leave a loan
balance of say $400.
How much would you pay in equal instalements in 12 months in order to pay
off 600 of loan and leave 400 ?
FV is that $400
therefore
=PMT(rate/12,12,-1000,400)
Click to expand...
....
Putting this a different way,

PMT(r,n,PV,FV) = PMT(r,n,PV+FV/(1+r)^n)
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Excel TVM functions of RATE, NPER, PMT, PV, and FV fail to produceresults that are known about Geome 0
Possible problem with PMT and FV functions 2
PMT function in Excel 7
PMT function question 2
Function to establish mortgage bond size. 2
FV function 2
Saving for College 1
PMT function and 1st payment partway through a period 3

Top