PMT+Function

Microsoft Excel has a built-in __//"Periodic Payment Function"//__ which calculates the amount you pay for a loan based on constant payments and a constant interest rate. The payment function is written as follows: //PMT(rate, nper, pv)// where "**rate**" is the interest rate for the loan, "**nper**" is the total number of payments for the loan, and "**pv**" is the present value or principal (i.e., the total amount that a series of future payments is worth now). For this function to work correctly, proper "syntax" (the order in which the function's variables are entered) must be observed.

You can also click on the fx button to the left of the formula bar and select PMT.