Hi and welcome students today's tutorial will cover Microsoft Excel 2022 and how to calculate a loan payment using the PMT function the PMT function calculates load payments based off of the constant interest rate and constant payments I'm gonna use buying a car as my example for today's scenario let's go ahead and get started so I have car loans right here and I have a business loan request so let's say that you're going out and you're gonna buy a car for thirty thousand dollars but you don't have any money so you need to take out a loan well the loan amount is going to be thirty thousand dollars so I basically set up a spreadsheet here very easy to set it up set up you could set it up the same way if you want no matter if it's a car loan a house loan or anything else that you might be looking at so right here I put basically three columns I have column a which are my first loan option column B and column C those are my three loan options right there and let's say that I have three different options for this loan as I said the loan amount is right here that's thirty thousand dollars for each of them and then I see that from there my numbers change a little bit right here's the annual interest rate and then right here are the number of years so for instance the first loan option says thirty thousand dollars for six percent interest rate and five years the next one thirty thousand dollars five percent interest rate so a little bit lower of an annual interest rate and then the number of years you have longer to pay it off and then...
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Irs payment plan calculator Form: What You Should Know
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