Financial Formulas
9 Aug 20171 minute to read
PMT
The PMT
function calculates the payment for a loan based on constant payments and constant interest rate.
Syntax:
PMT(rate, nper, pv, [fv], [type])
Where:
-
rate is the interest rate for the loan.
-
nper is the total number of payments for the loan.
-
pv is the present value, or the total amount that a series of future payments is worth now.
-
fv is the future value, or a cash balance you want to attain after the last payment is made. If Fv is omitted, it is assumed to be zero.
-
type is the number 0 or 1 and indicates when payments are due.
Set type equal to If payments are due 0 or omitted At the end of the period 1 At the beginning of the period.
PV
Calculates the present value of an investment (i.e. the total amount that a series of future payments is worth now).
Syntax:
PV(rate, nper, pmt, [fv], [type])
where:
-
rate is the interest rate per period.
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nper is the total number of payment periods in an annuity.
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pmt is the payment made each period and cannot change over the life of the annuity.
-
fv is the future value, or a cash balance you want to attain after the last payment is made.
-
type is the number 0 or 1 and indicates when payments are due.