#1
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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. |
#2
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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 |
#3
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Re: Excel translation needed
whoa, much more than i was expecting.
thank you. that makes sense to me now. |
#4
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Re: Excel translation needed
Copy & Paste baby.
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#5
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Re: Excel translation needed
[ QUOTE ]
Copy & Paste baby. [/ QUOTE ] OP just couldn't handle dealing with that damn paperclip. |
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