Excel:PMT Financial Function

Financial Functions, Payment Function

Use of Financial Functions

  • Excel allows you to store, manipulate and analyze data into organized workbooks
  • The real power in Excel comes in its ability to perform multiple mathematical calculations
  • Financial functions are pre-built formulas that make common business calculation such as loan payments on a vehicle or calculating how much to save each month to buy something
  • Financial functions make your worksheet more valuable for analyzing data
  • Financial Functions involve a period of time such as month and years

Sudent Connections

  • Students can track income and expenses with a Excel spreadsheet
  • Small business Entrepreneurs used Excel to track business expenses and employees

Inserting PMT Financial Function

  1. Select the cell where you want the function to be.
  2. From the Formula tab, select the Financial command
  3. A drop-down menu will appear showing all finance-related functions. Scroll down and select the PMT function.
  4. A dialog box will appear.
  5. Enter the desired values and/or cell references into the different fields. In this example, we're only usingRate, Nper (the number of payments), and Pv (the loan amount
  6. Click OK. The result will appear in the selected cell. Note that this is not our final result, as we still don't know what the interest rate will be

Excel 2010: What If Analysis

3-2-1 Protocol

Please complete the questions on your index and pass it in before you leave class!

  • Write down three things you have learned about the PMT Function
  • Two things that is noteworthy or interesting about the activity you completed in class today
  • One question you still have about the chapter or the assignments related to the chapter