I am using the PMT function in MS-Excel-2003 with both a PV amount and a FV
amount in the function. I am trying to calculate a monthly loan payment
where the loan amount has a residual after the last payment. The values I am
using are as follows:

Rate = 1.5%
Nper = 24
PV = $120,000.00
FV = $37,000.00
Type = 1

The PMT function yields a $4,629.46 payment amount.
When I calculate this out in a month-by-month table in Excel, the last
payment needs to be almost $500 lower that this monthly payment amount, in
order to result in a residual of $37,000
If a monthly payment amount of $4,612.39 is used in the month-by-month
table, the last payment needs to be only a few cents different n order to
result in a residual of $37,000

(1) Why does the PMT function not calculate the proper monthly amount with
both a PV and FV amount in the function?

(2) Is there a fix, or work-around to get the correct figure?