Loan payments 2

[kastaman]

I'm creating a table that will show the various payments in regards to the loan size and percentage.

I'm using the PMT table but I'm not getting the right info in so I can complete why table.

For example:
Loan = $15,000
Interest = 5%
3 years @ 12 pymts a year
=$449.56/month.

When I use the PMT table, I can't seem to get the same results. Here is what I'm keying in the fields:
Rate = 5%
Nper = 36
Pv = $15,000
Fv = $0.00
Type = blank

Please help.

Kastaman.

 

[tsuji]

Hello, kastaman.

Rate = 0.05/12
Or
=PMT(0.05/12,3*12,15000,0,0)

regards - tsuji

 

[GeekGirlau]

Just an explanation for the solution from Tsuji:

You're making 12 payments a year, or one a month. However your interest rate of 5% is for the whole year. Excel needs to know the interest rate per payment period. So if you pay monthly, your interest rate should be divided by 12. If you are paying weekly, divide your interest rate by 52 etc.