How do you enter a pmt function to calculate the monthly payments based on the amount to be financed?

Answer:
PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule.

PMT(interest_rate,number_payments,PV,FV,Type)

interest_rate = interest rate for the loan

number_payments = number of payments for the loan

PV = present value or principal of the loan (amount to be financed)

FV (optional) = future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of 0.

Type (optional) = indicates when payments are due. Type can be one of the following values:
0 = payments due at the end of the period (default or if value is left out)
1 = payments due at the beginning of the period
First answer by Dynotech. Last edit by Dynotech. Contributor trust: 240 [recommend contributor recommended]. Question popularity: 1 [recommend question].