FINANCIAL FUNCTIONS IN EXCEL
PMT FUNCTION
PMT stands for "Payment Made on Time"' and this function is used to calculate payment for a loan, that has a constant payment and constant interest rate with help of (Rate, Nper, and PV)
PMT FUNCTION ARGUMENTS
Rate: This is loan interest rate
Nper (Number of Periods): This is used to select the total number of loan periods.
PV (Present Value): This is a loan amount.
PMT FUNCTION EXAMPLE
Let's start PMT function with the following information.
Formula Explanation: In the above example we inserted data as ...
1. Loan Amount Rs. as PV
2. Interest Rate as Rate
3. Time Duration In Year as Nper
Note: PMT Function takes Nper as a month, therefore, we are multiplying Time duration with 12 and provide the output as a negative amount, therefore, we added (-) minus sign with PV value.
PV FUNCTION
PV stands for "Present Value" and this function is used to find present value with help of (Rate, Nper, and PMT)
FV FUNCTION
FV stands for "Future Value"' and this function is used to calculate the future value on an invested amount.
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