Fun with PMT

							FUN WITH PMT
You can use EXCEL to figure out the payments for ANYTHING based on        Part 1) Figure out the payment
your APR.                                                                         on each of these items

Use the PMT function as follows…                                             1.1   A 14,000 car. 4 year loan at 5.5%
                                                                             1.2   A 65.000 car. 5 year loan at 8.5%
Enter the interest rate or APR (with a % after it)                           1.3   A 244,000 house. 30 year loan at 11.55%
(divided by the number 12) in any cell on the spreadsheet                    1.4   An 80,000 house. 15 year loan at 10.5%
(Since interest is expressed in ANNUAL terms, and Payments are MONTHLY)      1.5   A 5,800 car. 3 year loan at 15.4%
Enter the number of months to pay it off in another cell                     1.6   A 9,900 car. 4 year loan at 5.5%
or just enter =years*12 if you are slick. ( =4*12) for 4 years               1.7   A 23,000 car. 5 year loan at 7.5%
(4 years = 48 months, 30 years = 360 months, etc)                            1.8   A 145,000 house 30 year loan at 4.5%
Enter the cost of the item in another cell                                   1.9   A 74,000 car. 4 year loan at 11.75%
Click in an empty cell (this will be where the Payment shows up)            1.10   A 88,000 car. 5 year loan at 5.0%
Go to insert…. Function                                                     1.11   A 42,000 car. 3 year loan at 9.5%
Find PMT                                                                    1.12   A 180,000 house. 30 year loan at 10.5%
Click in the Rate box and then click on the APR cell                        1.13   A 180,000 house. 30 year loan at 6.5%
Click in the NPER box and then click on the number of months cell
Click in the PV box and then click on the Cost of the item
                                                                          Part 2) Find three houses online.
WATCH THE VIDEO TO SEE HOW TO DO IT!                                              Use a PMT function to find the payment.
                                                                                  Assume a 30 year mortgage and
                                                                                  Get the interest rates from
                                                                                  www.bankrate.com
                                                                                  Use the 30-yr fixed average rate.

                                                                          Part 3) Find three new or used cars online.
                                                                                  Use a PMT function to find the payment.
                                                                                  Assume a 5 year loan and
                                                                                  Get the interest rates from
                                                                                  www.bankrate.com
                                                                                  Use the 60 month national average
                                                                                  for Auto Loans