Question

Ruby has taken a loan from a bank for her new house, she wants to calculate the monthly payment comparing the loan terms of principal amount, interest rate and number of months? Help her with a MS EXCEL function to calculate the monthly payment?

a) PMT()
b) SUM()
c) MAX()
d) MIN()

Answer 1

PMT, one of the financial functions, calculates the payment for a loan based on constant payments and a constant interest rate. Use the Excel Formula Coach to figure out a monthly loan payment. At the same time, you'll learn how to use the PMT function in a formula.