PMT and What if analysis. PMT  The Microsoft Excel PMT function returns the payment amount for a loan based on an interest rate and a constant payment.

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Presentation transcript:

PMT and What if analysis

PMT  The Microsoft Excel PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule.  The syntax for the Microsoft Excel PMT function is: PMT( interest_rate, number_payments, PV, [FV], [Type] )

Conti…..  interest_rate = Rate, divided by 12(number of months).  number_payments = NPER, multiply it with 12.  PV = Loan Amount = total amount.

What if analysis  By using what-if analysis tools in Microsoft Office Excel, you can use several different sets of values in one or more formulas to explore all the various results.  What-if analysis is the process of changing the values in cells to see how those changes will affect the outcome of formulas on the worksheet.  You can find this function in DATA tab in Data Tools group.