Data $9,620,320 principal, 360 # payments, 9 % rate, fv 0. Why do.

[rfreddy]

Data is $9,620,320 principal, 360 number payments,9% interest rate, future
value 0 abd type 1. Why does the PMT function calculate an answer of
$794,338.35.

[Duke Carey]

Because you need to convert the 9% annual rate into a monthly rate by
dividing it by 12, then you'll get $76,831.04 as your answer

Duke

"rfreddy" wrote:

> Data is $9,620,320 principal, 360 number payments,9% interest rate, future
> value 0 abd type 1. Why does the PMT function calculate an answer of
> $794,338.35.

[N Harkawat]

It is correct since your rate per period = 9%
Unless this 9% is a yearly rate and 360 is 360 months and not 360 years
Use 9%/12 in your formula it that is so


"rfreddy" <[email protected]> wrote in message
news:[email protected]...
> Data is $9,620,320 principal, 360 number payments,9% interest rate, future
> value 0 abd type 1. Why does the PMT function calculate an answer of
> $794,338.35.

[rfhorn]

Thanks. It worked great. i appreciate the informatiom.

"Duke Carey" wrote:

> Because you need to convert the 9% annual rate into a monthly rate by
> dividing it by 12, then you'll get $76,831.04 as your answer
>
> Duke
>
> "rfreddy" wrote:
>
> > Data is $9,620,320 principal, 360 number payments,9% interest rate, future
> > value 0 abd type 1. Why does the PMT function calculate an answer of
> > $794,338.35.