P
Preethi
Hi all,
Wanted to know what is the mathematical formula used for PMT
calculations.
Wanted to know what is the mathematical formula used for PMT
calculations.
S
Scottmk
It is the same as used on a financial calculator...Where it asks for
type is whether it is an annuity or annuity due.
Formula is: PV=PMT*((1-(1/(1+r)^t)/r)
Using algebra, solve for PMT
type is whether it is an annuity or annuity due.
Formula is: PV=PMT*((1-(1/(1+r)^t)/r)
Using algebra, solve for PMT
P
Preethi
where t= time frame in months?
r = rate of interest annually?
and PV = Principal Amount ?
r = rate of interest annually?
and PV = Principal Amount ?
S
Scottmk
where t=time (whether it be in months,years,weeks,etc.)
where r=rate per period (of time)
and PV=present value (or yes, principal amount, depending on what you
are doing)
r and t depend on compounding.
they need to match.
Ex. If you are dealing with a 5.25% APR rate (annual) with monthly
compounding then:
r=.0525/12
t=12
where r=rate per period (of time)
and PV=present value (or yes, principal amount, depending on what you
are doing)
r and t depend on compounding.
they need to match.
Ex. If you are dealing with a 5.25% APR rate (annual) with monthly
compounding then:
r=.0525/12
t=12
P
Preethi
thanks 
M
macropod
pmt=-if(rate=0,(pv+fv)/nper,(pv*((1+rate)^nper)+fv)/
((1+rate*type)*((1+rate)^nper-1)/rate))
All terms as described in Excel help on PMT.
Cheers
((1+rate*type)*((1+rate)^nper-1)/rate))
All terms as described in Excel help on PMT.
Cheers