<£10000.00 x 8% x 4 = £4800.00 interest

No. It is 1 month rent over 10000, 1 month over 9822.54, 1 month over
9643.89, etc. If you write out a 48 lines table, you'll see it matches the
result of PMT exactly

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Kind regards,

Niek Otten

Microsoft MVP - Excel

"John Davies" wrote in message
...
If I use the PMT function the montly instalment does not agree using
traditional maths. e.g. £10000.00 loan over 48 months @ 8% per annum. i.e
£10000.00 x 8% x 4 = £4800.00 interest
Total Loan amount = £10000.00 + £4800.00 interest = £14800.0
Monthly instalment = £14800.00/48 = £275.00

Using the PMT function i.e.
=PMT(8%/12,48,£10000.00) gives a monthly figure of £244.13
Please advise where I am going wrong
Thanks