Task 1 of 4
In B5, calculate the monthly payment.
Lesson theory
PMT(rate, nper, pv) returns the monthly payment on a loan (an amortizing loan: the payment is the same every month).
- rate — the rate per period: divide the annual rate by 12;
- nper — the number of monthly payments;
- pv — the loan amount. Excel treats money you receive and money you pay out as opposite signs. Entering the loan as
-B1flips the sign so the payment shows as a positive number.
=PMT(B2/12,B3,-B1)Total interest = all payments − the amount borrowed. Afterwards, change the term in B3 and watch how the interest grows.
The 6.5% rate here is just a practice number, not a quote.
Enter — commit · F2 — edit · F4 — $ in a reference · Ctrl+C/Ctrl+V — copy and paste · Ctrl+Z — undo
Esc or F6 — leave the sheet for the «Check» button · Shift+Tab in the first cell — back to the page