Excel OfficeExcel Financial Functions perform many of the common financial calculations, such as the calculation of yield, interest rates, duration, valuation and depreciation.
This tutorial shows how to solve for an annuity payment in Excel. An annuity is a series of equal cash flows, spaced equally in time. Case study: Using the PMT function, the goal in this example is to have 100,000 at the end of 10 years, with an interest rate of 5%. Payments are made annually,… read more »
To calculate a loan payment amount, given an interest rate, the loan term, and the loan amount, you can use the PMT function. Formula =PMT(rate,periods,-amount) Explanation In the example shown, the formula in C10 is: =PMT(C6/12,C7,-C5) How this formula works Loans have four primary components: the amount, the interest rate, the number of periodic payments… read more »
Learn all about Excel’s PMT, RATE, NPER, PV and FV To illustrate Excel’s most popular financial functions, we consider a loan with monthly payments, an annual interest rate of 6%, a 20-year duration, a present value of $150,000 (amount borrowed) and a future value of 0 (that’s what you hope to achieve when you pay off a loan). We make monthly payments,… read more »