Enter these three items:
PV - amount of the loan
Rate - interest rate
Terms - number of months to pay the loan
For example, a loan for 30 years of 100,000 at an interest rate of 8.5%, enter
PV - 100,000
Rate - 8.5
Terms - 360
The "Terms" is expressed in number of months which requires multiplying the number of years by 12, hence 30 years x 12 months per year = 360.
Press the PMT button and you get -768.91348. The resulting PMT value is generally, if not always, in the reverse sign of the present value, PV.
A tool for business students, realtors, mortgage brokers, insurance agents, etc. for their daily calculation of mortgages, annuities, interest rates, and many more, most especially when their calculator is not available but their cell phone or PC is.
Wednesday, February 3, 2010
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