All financial functions require that the interest rate and the payment
represent the same period. As your payment is monthly, you need to have a
monthly interest rate. To convert, follow this example.

1. Suppose your interest rate is 6% compounded daily.
2. If you borrowed $1, how much money would you owe after one month? That
will tell you what your compounded monthly interest rate is. Calculate
using:
3. =FV(6%/365,365/12,0,-1)
4. =1.005012, so your monthly rate is 0.5012%
5. Put everything together like:

=pmt(fv(6%/365,365/12,0,-1)-1,5*12,-10000)

Regards,
Fred.

"Dennis" wrote in message
...
I have a question regarding the PMT funtion. Example: loan amount = 10000,
Annual % rate is 7.5%, term is 5 years, payments per year is 12.
The regular function would be: PMT(%/12, 5*12,-10000)

How do you set this up using daily interest instead of monthly interest
with
a monthly payment.

Or, is the PMT function the correct function to use??