PMT & FV discrepancy

[Steve Simons]

I have tried the following functions, using the data and arguments as outlined below. I didn't get the answer I expected
- can anyone guide me please?

A2 B2 C2 D2 E2
interest rate time period loan amount Future Value Type
(years)
7.5% 30 100,000 0 0

=PMT(A2/12,B2*12,C2,D2,E2)

returns -£699.21

A2 B2 C2 D2 E2
interest rate time period Payment loan amount Type
(years)
7.5% 30 -699.21 100,000 0 0

=FV(A2/12,B2*12,C2,D2,E2)

retruns -£6.08 (minus 6.08)

I expected this to give me a result of 0 (zero) ? Am I misunderstaning these funtions, or is there an inherent prblem
with them?

TIA

Steve

 

[Bernard Liengme]

Hi Steve,
Your worksheet is displaying 699.21 but the actual value is
699.214508552778, or about 1/2 penny more. Those fractions of a penny add up
over 30 years!
Best wishes

 

[Steve Simons]

Hi Bernard

Thanks for this. I thought it might be something like that. I had worked out that it was 0.006% over 30 years, so was
fairly minor.

Steve

 

[Steve Simons]

Hi (again) Bernard

I pasted in the exact figure of 699.214508552778 and the result was 0.

Thanks again

Steve

 

[Bernard Liengme]

A banker told me that her bank would charge you 699.22 each month and adjust
the last payment to make everything work out.