+ Reply to Thread
Results 1 to 3 of 3

Discrepancy in PMT function ( annual payment and monthly payment)

  1. 05-09-2017, 04:19 PM #1
    TaylorNYC
    TaylorNYC is offline
    Registered User
    Join Date
    05-09-2017
    Location
    New York
    MS-Off Ver
    2016
    Posts
    1

    Discrepancy in PMT function ( annual payment and monthly payment)

    Why the monthly payment multiplied by 12 is not equal to annual payment calculated with PMT funtion.

    E.x:

    Rate: 5%
    Period: 10 years
    Loan Amount: $1,000,000

    PMT(5/12,10*12,1000000)*12 is not equal to PMT(5,10,1000000)

    Thanks



    Discrepancy in PMT function ( annual payment and monthly payment)
    Reply With QuoteRegister To Reply
  2. 05-09-2017, 04:24 PM #2
    tim201110
    tim201110 is offline
    Forum Expert tim201110's Avatar
    Join Date
    10-23-2011
    Location
    Russia
    MS-Off Ver
    2016, 2019
    Posts
    2,357

    Re: Discrepancy in PMT function ( annual payment and monthly payment)

    https://en.wikipedia.org/wiki/Annuity
    Reply With QuoteRegister To Reply
  3. 05-09-2017, 05:15 PM #3
    shg
    shg is offline
    Forum Expert shg's Avatar
    Join Date
    06-20-2007
    Location
    The Great State of Texas
    MS-Off Ver
    2003, 2010
    Posts
    40,678

    Re: Discrepancy in PMT function ( annual payment and monthly payment)

    I assume you meant

    PMT(5%/12, 10*12, 1000000) * 12 and PMT(5%, 10, 1000000

    You pay more interest with annual rather than monthly payments.
    Last edited by shg; 05-10-2017 at 11:31 AM.
    Entia non sunt multiplicanda sine necessitate
    Reply With QuoteRegister To Reply
+ Reply to Thread
« Previous Thread | Next Thread »

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Reverse IRR Calculation with two payment schedules (Target IRR, need to determine payment)
    By spaniard25 in forum Excel General
    Replies: 5
    Last Post: 03-07-2017, 02:52 AM
  2. formula to subtract payment amount on monthly payment date
    By restingdonkey in forum Excel Formulas & Functions
    Replies: 1
    Last Post: 06-18-2014, 03:39 PM
  3. Need function to calculate monthly payment of mortgage?
    By mixhi4ever in forum Excel Formulas & Functions
    Replies: 2
    Last Post: 03-11-2014, 04:43 AM
  4. How to split a lump sum into a monthly payment given the month the payment should start?
    By rikkyshh in forum Excel Formulas & Functions
    Replies: 0
    Last Post: 08-24-2013, 11:43 AM
  5. Wish to know the formula to calculate monthly loan payment from fifth payment onward.
    By Elvin Lim in forum Excel Formulas & Functions
    Replies: 3
    Last Post: 07-29-2013, 11:31 AM
  6. Calculating Total Annual Payment Based on Cumulative Monthly Payments
    By ExcelTip in forum Tips and Tutorials
    Replies: 0
    Last Post: 08-29-2005, 11:04 AM
  7. [SOLVED] pmt function in Excel does not return correct monthly payment amou
    By Harraman@Bangalore in forum Excel Formulas & Functions
    Replies: 7
    Last Post: 03-04-2005, 12:06 AM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Forum Rules


Search Engine Friendly URLs by vBSEO 3.6.0 RC 1