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Calculate loan payments and investments with PMT and FV functions

Calculate loan payments and investments with PMT and FV functions - Microsoft Excel Tutorial

From the course: Excel Tips Weekly

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Calculate loan payments and investments with PMT and FV functions

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- [Instructor] Excel has well over 50 financial functions. 2 And if you're curious about what they are 3 and what they mean, 4 you can go to the "formulas" tab 5 in the ribbon. 6 And under "financial," here they are. 7 Two of the more popular ones, 8 and probably two that are likely 9 to be used by those 10 who are not necessarily in financial circles, 11 are the "PMT" and "FV" functions. 12 The PMT function is used 13 to calculate payment on a loan. 14 So suppose you're borrowing money, 15 say for a car, a house. 16 In the example here in column B, 17 we're borrowing $25,000. 18 We want to pay this off over 48 months. 19 The interest rate, 3.25%. 20 And once you learn how to use these, 21 and they're relatively straightforward, 22 you can of course experiment with the numbers 23 or check that other credit union, 24 see what their rates are, 25 or the bank, and so on. 26 Equal PMT. 27 The rate, here it…

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