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Dalex Finance Loan Chart PDF Form

Dalex Finance Loan Chart PDF Form

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in this video we're gonna talk about how to use the PMT function in Excel in order to calculate loan payments so let's begin by zooming in so in column B I'm going to write the annual interest rate and then the number of the years that we're going to pay off the loan and then the number of payments and also the principal or the loan amount and then we're going to calculate the monthly payment to basically take care of that loan now let's go ahead and extend the width of column B we're also going to figure out the total costs and also the total interest paid so let's say that we take a loan of $20,000 to buy a car and let's say we want to pay it off in ten years and we have an annual interest rate of five percent what is our monthly payment how much do we need to pay every month so that we can pay off this twenty thousand dollar loan in ten years with a five percent annual interest rate so to figure out the monthly payment we need to use the PMT function but first let's write a formula

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