September 2011
Beginner
140 pages
3h 40m
English
Wondering how much you would have to pay monthly for your mortgage if you agreed to constant monthly repayments? The PMT function is the right tool to use. For this use:
=PMT(7.5%/12; 25*12; 1,000,000)
Figure 8-11. Sample result of the PMT function
In this case you assume that you borrow a cool $1,000,000 (the loan) at a constant interest rate of 7.5% and you would be paying it back over 25 years. If that's the situation, your monthly rate would be –$7,389.91. The minus sign indicates that this is the money paid out of your pocket.
The first argument is the annual interest rate ...
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