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I need help with the math equivalent for excel formula PMT(). There is an answer @ below thread... BUT nothing is mentioned with regards to the option parameters of PMT() i.e. FV and Type. Can anyone please guide with math equivalent with FV?

What would be the the mathematical equivalent of this excel formula? =PMT()

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    It is not a duplication. Its an extension question which is not answered in that post. Please read question FULLY before commenting.I am a new member and webpage is not allowing me to post comment on that existing question. Dec 20, 2018 at 7:15
  • This kind of question seem to better suited for financially literate community rather than computer enthusiasts.. || Just in case it had been answered the OP should share the answer here or optionally close it. Good luck. ( :
    – p._phidot_
    Dec 20, 2018 at 11:22
  • This is actually for an IT project; need to develop a solution equivalent to Excel's PMT () Dec 20, 2018 at 11:55
  • I have figured it out... posting here to help others: PMT = r / ((1 + r)^N - 1) * (pv * (1 + r)^N - fv) r = Annual Interest rate/100/ Total Number of payments in whole term N = Total number of payments in whole term PV = Loan Amount FV = future Value/Residual Value Dec 20, 2018 at 12:51

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I have figured it out... here is how FV or Residual Value (RV) will be added to the mix...

P = r / ((1 + r)^N - 1) * (pv * (1 + r)^N - fv)    
  • P = Monthly Payment
  • PV = Present Value (starting value of the loan)
  • APR = Annual Percentage Rate
  • r = Periodic Interest Rate = APR/number of interest periods per year
  • N = Total number of interest periods (interest periods per year * number of years)
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  • can confirm this is true. see here for the derivation: mathematica.stackexchange.com/a/225502/8988
    – Sha
    May 16, 2021 at 22:37
  • This absolutely saved my bacon. I scoured for so long trying to find a formula that factored in future value. Thank you!!!
    – mhodges
    Oct 27, 2023 at 18:26

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