how pmt function works, what is its background / machanizm?
Even I have obtained the result by using the function PMT. But I still
consfuse that how PMT function works, what is its background / machanizm. When we give parameters in this function, how this function manipulate the parameters and give us result? Also how can find any function's background / machanizm in excel help? |
how pmt function works, what is its background / machanizm?
Mujeeb wrote:
Even I have obtained the result by using the function PMT. But I still consfuse that how PMT function works, what is its background / machanizm. When we give parameters in this function, how this function manipulate the parameters and give us result? Take a look at the mathematical formula at the bottom of the Help page for the PV() function. Algebraically solve for "pmt". If that does not sufficiently answer your question, you might google for "present value formulas" (without quotes). For example, http://en.wikipedia.org/wiki/Present_value might be useful. |
how pmt function works, what is its background / machanizm?
PMT is an annuity see this:
http://groups.google.com/group/micro...5a9758c3 034f Mujeeb wrote: Even I have obtained the result by using the function PMT. But I still consfuse that how PMT function works, what is its background / machanizm. When we give parameters in this function, how this function manipulate the parameters and give us result? Also how can find any function's background / machanizm in excel help? |
how pmt function works, what is its background / machanizm?
Here's the equation I found for calculating payment (PMT) if PV (mortgage
amount), n (number of payment periods) and i (interest rate) are known: http://www.frickcpa.com/tvom/TVOM_formulas.asp (see PMT - Present value of Annuity) Note that "i" is the interest rate per payment period. If payment period is monthly, "i" is (annual interest rate/12) and the annual interest rate is in decimal form (0.08) vs.. percentage (8%). The formula here is a lot easer to follow, IMHO. Hope that this helps. "Mujeeb ur Rehman, FBL-GRW-PK" wrote: Even I have obtained the result by using the function PMT. But I still consfuse that how PMT function works, what is its background / machanizm. When we give parameters in this function, how this function manipulate the parameters and give us result? Also how can find any function's background / machanizm in excel help? |
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