Manuals/calci/PMT

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

• $Rate$ is the interest rate.
• $NoPaymentPeriods$ is the total number of payment periods.
• $PresentValue$ is the at present value.
• $FutureValue$ is the future value.
• $Type$ is the type.
  • PMT(), returns the periodic payment for an annuity

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 $NoPaymentPeriods$.

ZOS Section

• 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)

Examples

1. =PMT(0.11/12,14,25000) = -1910.908677870
2. =PMT(0.09/12,20,50000,10000,0) = -3166.8379163721
3. =PMT(0.09/12,20,50000,10000,1) = -3143.26344056

Related Videos

PMT

See Also

• FV
• IPMT
• PPMT
• NPER
• PV

References

• PMT

• List of Main Z Functions

• Z3 home