Excel translation needed
 

i have the formula and want to know what it all means. the formula calculates a monthly payment on a loan. the formula is:

=PMT((C1*0.01)/12,C3*12,C2,0)

where
PMT = monthly payment
C1 = interest rate as a whole number
C2 = loan amount
C3 = length of loan in years

what does the first 12 and the 0 mean? also, i dont understand the english translation/logic of this formula.

original formula can be found here

thanks.

Re: Excel translation needed
 

PMT(rate,nper,pv,fv,type)

Rate is the interest rate per period. For example, if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month is 10%/12, or 0.83%. You would enter 10%/12, or 0.83%, or 0.0083, into the formula as the rate.

Nper is the total number of payment periods in an annuity. For example, if you get a four-year car loan and make monthly payments, your loan has 4*12 (or 48) periods. You would enter 48 into the formula for nper.

Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 (zero) or 1 and indicates when payments are due.

Set type equal to If payments are due
0 or omitted At the end of the period
1 At the beginning of the period

Re: Excel translation needed
 

whoa, much more than i was expecting.

thank you. that makes sense to me now.

Re: Excel translation needed
 

Copy & Paste baby.

Re: Excel translation needed
 

[ QUOTE ]
Copy & Paste baby.

[/ QUOTE ]

OP just couldn't handle dealing with that damn paperclip.