PMT formula

                                                  PMT FORMULA

Use of PMT Formula

• calculate the monthly payment due on personal loan
• Calculate the payment due for the mortgage loan, which interest calculated compounded by anuallu.

Suppose we have taken loan form the bank and we have to find out the EMI Amount. 

Example:- Mr. x took loan for Rs. 100000/- for five year and monthly interest rate is 1%.                                  then we calculate the EMI through PMT function.

Syntex

   =pmt(rate,nper,pv[fv],[type])

Rate:- Rate is the interest rate for the laon

Nper:- is the total number of payment for the loan.

PV   :- PV is the present value it is also known as the Principal amount.

FV:- it is known as Future value it is optional

   
   rate  = rate is The percent which is fix by the bank on the loan

   nper = nper is the time which is in month like 5 years(60 months)

     Pv = pv is present value (we can say the loan which is taken by us)

The value will show in minus because we are paying the money.