Question

When using the PMT function in excel to calculate periodic payment rates based on the principal value (pv), number of periodic

payments (nper), and interest rate (rate) for a loan, what is the correct order of arguments to insert?

Answer 1

The formula is

=PMT(rate, nper,pv,fv, type)

And hence the order of argument is being explained as being mentioned above.

Step-by-step explanation:

=PMT (rate, nper, pv, fv, type)

Arguments:

rate - This the interest rates for the Loan.

nper - This is the total number of payments required to clear the loan.

pv - This the value at current time. the total amount of the loan to be paid.

fv - [optional] This is the future value of the loan amount that is being left after the last payment is being done.

type - this is optional and means when payment are due, and it can be 0 or 1. for the end of the period it is 0 and for the start it is 1. By default it is 0.