PMT formula
When using the PMT formula, why does the payment come back in a negative?
How can this be changed into a positive so it doesn't screw up my amortization table? |
use -pmt
or -PV "Chuck" wrote in message ... When using the PMT formula, why does the payment come back in a negative? How can this be changed into a positive so it doesn't screw up my amortization table? |
This is so that one can keep track of the *direction* that money is
flowing. For instance, a standard convention is that for money flowing *out*, the number is negative, whereas for money flowing *in*, the number is positive. So if you get a loan (money coming in) then your payment should be negative (money going out). However, this is just a convention, so you can feel free to put the loan amount as a negative, or to negate the answer. This is explained in Help (the "PV" topic, which is referred to by the "PMT" topic). In article , "Chuck" wrote: When using the PMT formula, why does the payment come back in a negative? |
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