MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.
First Installment Amount (PMT) is calculating. Example is mentioned under:-
Say, Mr X, retired employee, gets pension $10,000. Present value $1,036,246.19 Get pension for 20 years. Rate of Interest:- 10% pa. Calculate PMT
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Pension Amount = ?
Rate of Interest = 10% Per Year
No of Installment = 240 20 years & 12 months each
Present Value = $1,036,246.19
PMT(Monthly Pay) = ($10,000.00) (calculated)
In 2003 Excel:- Insert Menu -- Function -- Select Financial -- Select PMT -- Ok -- PV:- ($1,036,246.19), NPER:- 240, Rate:- 10%/12, FV:- $15,187,376.74
In 2007 Excel:- Formula Menu --> Financial --> PMT -->
PV:- ($1,036,246.19), NPER:- 240, Rate:- 10%/12, FV:- $15,187,376.74
NEGATIVE PMT VALUE CALCULATE