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#1
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pmt function in Excel does not return correct monthly payment amou
annual int rate = 5.75
number of months = 360 principle - 320000 PMT answer = (103,667.97) This is not correct. Can someone advise correct format for computing this payment amount. Seesm straight forward. |
#2
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Hi
I get an answer of 1867.43 Are you dividing your 5.75% by 12 to get it to a monthly rate? -- Regards Roger Govier "Harraman@Bangalore" wrote in message ... annual int rate = 5.75 number of months = 360 principle - 320000 PMT answer = (103,667.97) This is not correct. Can someone advise correct format for computing this payment amount. Seesm straight forward. |
#3
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Note that interest rates are expressed as fractions, like 0.0575.
Also note that if the number of periods is in months, the rate should be the month rate too. If you still can't solve it, repost here and supply your formulas, values and expected result please. -- Kind Regards, Niek Otten Microsoft MVP - Excel "Harraman@Bangalore" wrote in message ... annual int rate = 5.75 number of months = 360 principle - 320000 PMT answer = (103,667.97) This is not correct. Can someone advise correct format for computing this payment amount. Seesm straight forward. |
#4
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Great, thanks. I entered the % as 5.75 rather than.0575. The example from
Microsolt Help on PMT is not correct. They show it as 8%. So, again, thanks. "Niek Otten" wrote: Note that interest rates are expressed as fractions, like 0.0575. Also note that if the number of periods is in months, the rate should be the month rate too. If you still can't solve it, repost here and supply your formulas, values and expected result please. -- Kind Regards, Niek Otten Microsoft MVP - Excel "Harraman@Bangalore" wrote in message ... annual int rate = 5.75 number of months = 360 principle - 320000 PMT answer = (103,667.97) This is not correct. Can someone advise correct format for computing this payment amount. Seesm straight forward. |
#5
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The issue is that I followed the Microsoft guideline and entered the % as
5.75 rather than .0575. I changed it and got the correct answer. Niek Otten also responded and gave me this direction. "Roger Govier" wrote: Hi I get an answer of 1867.43 Are you dividing your 5.75% by 12 to get it to a monthly rate? -- Regards Roger Govier "Harraman@Bangalore" wrote in message ... annual int rate = 5.75 number of months = 360 principle - 320000 PMT answer = (103,667.97) This is not correct. Can someone advise correct format for computing this payment amount. Seesm straight forward. |
#6
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Not sure what "Microsoft guideline" you were following, but, as Help
shows, you can enter the percentage as 5.75% rather than 0.0575 Note the % sign. In article , Harraman@Bangalore wrote: The issue is that I followed the Microsoft guideline and entered the % as 5.75 rather than .0575. |
#7
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If you enter 5.75% as opposed to 5.75 then Excel will interpret this
correctly for you as .0575. However, you said in your original post annual int rate = 5.75 number of months = 360 If that is the case, then you are dealing in months as your periods and the interest rate has to be expressed as the interest rate per period. Therefore you need it to be either 5.75% / 12 or 0.0575 / 12 in order to obtain the correct result. -- Regards Roger Govier "Harraman@Bangalore" wrote in message ... The issue is that I followed the Microsoft guideline and entered the % as 5.75 rather than .0575. I changed it and got the correct answer. Niek Otten also responded and gave me this direction. "Roger Govier" wrote: Hi I get an answer of 1867.43 Are you dividing your 5.75% by 12 to get it to a monthly rate? -- Regards Roger Govier "Harraman@Bangalore" wrote in message ... annual int rate = 5.75 number of months = 360 principle - 320000 PMT answer = (103,667.97) This is not correct. Can someone advise correct format for computing this payment amount. Seesm straight forward. |
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