Help please-PV funtion without PMT argument...

  • Thread starter Thread starter Itachi
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Itachi

Hey guys, I'm new to the forum. :)


I've been having this problem for the past 3 days now. I almost gave u
doing this school project until I found this forum. The thing I need i
to calcualte a car loan. I got some figues from kbb.com but here's th
thing:


I can't calculate the PMT function without PV. It's needed in the arg
also, I can't get PV becasue I need PMT in one of the arguments. so
have no idea what to do... :confused:


also, exactly what is the PV? by "present value" does it mean the valu
all the payments AND interest to be paid? in other words the value o
the loan and its interest in total? I searched all over the net for P
and FV but all I found was either excel help or complicated math... ca
some one give an example of like a 1000 dollar loan with, say 10
interest, and show what is the PV, and FV, for that?


Thanks for any help. This is very important to me
 
Itachi > said:
I've been having this problem for the past 3 days now. I almost
gave up doing this school project until I found this forum. The
thing I need is to calcualte a car loan. I got some figues from
kbb.com but here's the thing:

I can't calculate the PMT function without PV. It's needed in
the arg. also, I can't get PV becasue I need PMT in one of the
arguments. so I have no idea what to do... :confused:
Click to expand...
....

The PV is the amount of the loan. If you take out a loan on a car which is
priced at, say, $10,000, then -10000 is the PV of the loan.
 
Thanks.

I stumbled on microsoft's training home page and got the same answer.

I have some other questions too.. if nobody minds helping. :)

1) how do you start a table to calculate PMT for different interest
traits and different months?


2) my PMT for the 10260 $ loan, 4% interest, 36 paymnents, got me a PMT
of 542.62 while Kelly blue book's calculator has 302.92 $... any idea
of why is that?


Again thanks a lot for any help.
 
All your terms need to be in the same time units. You're using

=PMT(4%,36,-10260)

but the 36 is months, while the 4% is annual rate. Convert the rate to
monthly.

Try:

=PMT(4%/12, 36, -10260) ==> $302.92
 
Itachi > said:
Thanks.

I stumbled on microsoft's training home page and got the same answer.

I have some other questions too.. if nobody minds helping. :)

1) how do you start a table to calculate PMT for different interest
traits and different months?


2) my PMT for the 10260 $ loan, 4% interest, 36 paymnents, got me a PMT
of 542.62 while Kelly blue book's calculator has 302.92 $... any idea
of why is that?


Again thanks a lot for any help.
Click to expand...


Itachi,

The answer to the second question depends on the interest rate.
302.92 is correct if 4% is the interest per year. 542.62 is correct
if the interest rate is per month.


Hope this helps,

Mike
 
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