How To Find Pmt In Financial Calculator
Loan Calculator
Calculator Use
Apply this loan estimator to determine your monthly payment, interest rate, number of months or principal amount on a loan. Find your platonic payment by irresolute loan amount, interest rate and term and seeing the effect on payment corporeality.
You lot tin can also create and print a loan amortization schedule to run across how your monthly payment will pay-off the loan principal plus interest over the class of the loan.
- Loan Corporeality
- The original main on a new loan or master remaining on an existing loan.
- Interest Rate
- The almanac nominal interest rate, or stated charge per unit of the loan.
- Number of Months
- The number of payments required to repay the loan.
- Monthly Payment
- The amount to be paid toward the loan at each monthly payment due date.
- Compounding
- This reckoner assumes interest compounding occurs monthly every bit with payments. For additional compounding options utilize our Avant-garde Loan Computer.
Loan Calculations
When y'all accept out a loan, you must pay back the loan plus interest by making regular payments to the bank. And so you can recall of a loan as an annuity you pay to a lending establishment. For loan calculations nosotros can apply the formula for the Present Value of an Ordinary Annuity:
\( PV=\dfrac{PMT}{i}\left[1-\dfrac{1}{(1+i)^n}\right] \)
- PV is the loan amount
- PMT is the monthly payment
- i is the interest charge per unit per month in decimal form (interest rate per centum divided by 12)
- n is the number of months (term of the loan in months)
Calculation Options
Find the Loan Amount
To calculate the loan amount nosotros use the loan equation formula in original course:
\( PV=\dfrac{PMT}{i}\left[one-\dfrac{1}{(i+i)^n}\right] \)
Example: Your bank offers a loan at an annual interest rate of 6% and you are willing to pay $250 per month for iv years (48 months). How much of a loan can to take?
Solve using CalculatorSoup Loan Calculator
Adding: Find the Loan Amount
Interest Rate: % half dozen
Number of Months: 48
Monthly Payment: $ 250
Respond Link: Discover the Loan Corporeality is $x,645.08
Solve using the formula:
PMT = 250
north = 48
i = 0.06/12 = 0.005
\( PV=\dfrac{250}{0.005}\left[ane-\dfrac{1}{(1+0.005)^{48}}\correct] \)
= $10,645.08
Solve on a TI BA 2 Plus
Exist sure P/Y is set to 12 for monthly payments (12 payments per year and monthly compounding).
Press the [2d] key and the [FV] key to articulate the TVM worksheet
- Input -250 and press the [PMT] central
(the 250 payment volition be negative greenbacks flow for you lot) - Input 48 and press the [Due north] fundamental
- Input 6 and press the [I/Y] key
- Press the [CPT] key and the [PV] key
The answer is: PV = x,645.08, the loan amount yous can get, positive greenbacks flow for you now.
Find the Number of Months
To find the number of months we solve the equation for n:
\( n=\dfrac{ln\left[\dfrac{\frac{PMT}{i}}{\frac{PMT}{i}-PV}\right]}{ln(1+i)} \)
Find the Monthly Payment
To find the monthly payment we solve the equation for PMT:
\( PMT=\dfrac{PVi(1+i)^n}{(1+i)^n-1} \)
Find the Interest Rate
Finding the interest rate is a complex adding involving the Newton-Raphson Method which you tin can read about at MathWorld.
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Source: https://www.calculatorsoup.com/calculators/financial/loan-calculator.php
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