Manuals/calci/PMT

PMT(r,np,pv,fv,ty)

PMT (Rate,NoPaymentPeriods,PresentValue,FutureValue,Type)

Description

This functon gives the payment amount for the loan.
It is based on the period, fixed payments and a fixed interest rate.
In $PMT(Rate,NoPaymentPeriods,PresentValue,FutureValue,Type)$ , $Rate$ is the annual rate of interest for the loan.
Suppose we are taking a loan for 8 percent annual interest rate and paying the amount in monthly, then the $Rate$ value is 8%/12.
So we have to enter the $Rate$ value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
$NoPaymentPeriods$ is the total number of payment periods in an annuity.
$PresentValue$ is the present value or the amount borrowed or the principal of the loan.
$FutureValue$ is the future value of an investment or loan (the value you want to achieve at the end of all periods) when we are omitting the value of $FutureValue$ ,then it is assumed to be 0.
i.e.,future value of a loan is 0.
$Type$ is the number 0 or 1 which is specifies the time to make a payment during the period.
when we are not giving the value of $Type$ , then it is assumed to be 0.

Type value	Explanation
0	Payments are due at the end of the period
1	Payments are due at the beginning of the period

The amount given by the function $PMT$ not containing any taxes,rserve payments or extra fees related with the loan.
But it contains only the principal amount and interest only.
Also to calculate the total amount paid during the loan period, multiply the returned $PMT$ value by $NoPaymentPeriods$ .

The function to calculate PMT in ZOS is PMT(Rate,NoPaymentPeriods,PresentValue,FutureValue,Type)
$rate$ is the interest rate.
$NoPaymentPeriods$ is the total number of payment periods.
$PresentValue$ is the current value for the amount.
$FutureValue$ is the future value.
For e.g.,PMT(0.62/12,19..22,34000)