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Question about financial calculation PMT
I want to verify that I am using the PMT function correctly. The situation
is someone who has a sum of money in the bank earning a certain return. They want to withdraw a fixed amount each month so that at the end of 20 years the account balance is zero. The figures a Initial balance: 200,000 Annual return: 6% Years: 20 I am using this: =PMT(.06/12, 20*12, -200000) Have I got this right? Thanks -- Peter Aitken Remove the crap from my email address before using. |
#2
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Yes its correct @ 1432.86 per month
"Peter Aitken" wrote in message ... I want to verify that I am using the PMT function correctly. The situation is someone who has a sum of money in the bank earning a certain return. They want to withdraw a fixed amount each month so that at the end of 20 years the account balance is zero. The figures a Initial balance: 200,000 Annual return: 6% Years: 20 I am using this: =PMT(.06/12, 20*12, -200000) Have I got this right? Thanks -- Peter Aitken Remove the crap from my email address before using. |
#3
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Would this be the same formula then to determine the monthly payment
required to pay off a mortgage within a certain number of years? That is, the morgage is 200,000, the interest rate is 6%, and the term is 20 years - and the required monthly payment is 1432.86. How would the formula be changed to reflect the case where the payments are made every 2 weeks, but the interest is still charged monthly? Thanks. On Wed, 30 Mar 2005 08:56:23 -0500, "N Harkawat" wrote: Yes its correct @ 1432.86 per month "Peter Aitken" wrote in message ... I want to verify that I am using the PMT function correctly. The situation is someone who has a sum of money in the bank earning a certain return. They want to withdraw a fixed amount each month so that at the end of 20 years the account balance is zero. The figures a Initial balance: 200,000 Annual return: 6% Years: 20 I am using this: =PMT(.06/12, 20*12, -200000) Have I got this right? Thanks -- Peter Aitken Remove the crap from my email address before using. |
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