Use Pmt to compute the amount of the periodic payment of a loan. Most installment loans are computed like ordinary annuities, in that payments are made at the end of each payment period. Store the following information in the memory registers:
Register 0: Principal or amount of the loan
Register 1: Periodic interest rate of the loan
Register 2: Term, or number of payments
You are considering taking out a $120,000 mortgage for 30 years at an annual interest rate of 11.0%. You want to determine your monthly repayment.
Memory register usage:
Register 0: 120000 (principal). Register 1: 0.00916 (periodic interest rate is 11.0% / 12) Register 2: 360 (term - 30 x 12)
Clicking SELECT on Pmt returns 1142.06, the value in dollars of your monthly repayment.