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PMT and What if analysis

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Presentation on theme: "PMT and What if analysis"— Presentation transcript:

1 PMT and What if analysis

2 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] )

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

4 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.


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