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MS Excel : Find out the LOAN TERMS
You can use the Excel payment function (PMT) when
buy a house or car This function allows you
compare the loan terms and make an objective decision
based on factors such as the monthly amount
payment.
You can figure advance installments from numerous points of view when
using Excel, but using the PMT function can be
more simple because you simply enter the arguments
in the Function Wizard. To do your job even
easier, enter your argument values in your
worksheet before starting the wizard. Then by
By clicking on a cell, you can enter the value of the cell
in the wizard
The PMT function takes three required arguments. by
RATE, enter an annual interest rate of 5 percent
and afterward type .05 isolated by 12 to compute the
monthly rate For NPER, number of periods, enter
the number of loan periods for the loan that you are
searching. For PV, present value, enter the amount of
the loan. The monthly payment appears surrounded
in parentheses, which means that the number is
negative, or a cash outflow.
1 Write the principal (this
value), interest rate and number
of periods
2 Click on the cell in which
He wants the result to appear.
3 Click the Insert Function button.
l The Insert Function dialog box
appears.
4 Click here and select Financial.
5 Double click on PMT.
l The PMT function
Arguments dialog box
appears.
6 Click on the cell with
the interest rate.
7 Divide the interest rate
by the number of
periods per year; for
example, type 12.
8 Click on the cell with
The number of periods.
9 Click on the cell with
director.
0 Click OK.
The result appears in the cell.
Note: The result shows the amount of a
Single loan payment.
Note: you can repeat steps 1 to 10 for others
combinations of the three variables.
Did you know
On a worksheet, you can create a loan calculatorshowing all values at once. Place the labels
Principal, interest and number of months of a loan
period in a column. Enter their respective values in
adjacent cells on the right. Use references to those
cells in the Capacity Contentions discourse box for PMT.
Did you know
Excel's objective search function allows you to calculatepayments With the goal search, you can set up a
problem to specify a goal, such as payments less
that $ 1,100 per month, and that Excel vary a single
courage to reach the goal. The limitation is that you can
vary only one value at a time. See Task # 59 for more
information.