pmt - Periodic (Annuity) Payments PMT The periodic payment...

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Periodic (Annuity) Payments – PMT The periodic payment or deposit for an annuity can be calculated using Excel's PMT function. See the table below for a detailed list of the exercises and problems in the text that can be solved using this function. Syntax -PMT(rate,number of periods,present value,future value,type) Rate – Interest rate Number of periods – term of investment Payment – periodic payments where individual amounts are the same Present Value – value of the investment today Future Value – value of the investment at end of term (0 if omitted) Type – when payment is to be made 0 – at end of period (assumed if left blank) 1 – at beginning of period General Example The following general example shows how the PMT function can be used. Notice that the PMT function appears in the formula bar. 1
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Using the PMT Function in a Spreadsheet To calculate the periodic payment or deposit for an annuity, create a spreadsheet by following Steps 1 to 7. Or, to use the PMT function right away, open the PMT worksheet in the Excel Functions Templates workbook. All fields have been formatted for you (currency, percentage, number of decimals displayed). Step 1 : In cell A1 enter PMT Function. You will replace PMT Function with your project title when you use the spreadsheet for a particular question or situation. Step 2 : In cell A3 enter Interest Rate per Compounding Period . In cell A4 enter Total Number of Compounding Periods . In cell A5 enter Present Value . In cell A6 enter Future Value . In cell A7 enter Type (Ordinary or Due) . In cell A8 enter Answer . Step 3 : Leave cells B3 to B7 empty. You will place values in these cells later. Step 4
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This note was uploaded on 08/22/2009 for the course MATH 1101 taught by Professor Tonycirusolo during the Fall '05 term at Niagara College.

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pmt - Periodic (Annuity) Payments PMT The periodic payment...

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