How to use the PMT function in Google Sheets?

The PMT function in Google Sheets is a financial function that calculates the payment for a loan based on constant payments and a constant interest rate. The PMT function can be used to calculate the monthly payment for a mortgage or car loan.

The syntax for the PMT function is:

=PMT(rate, number_of_periods, present_value, [future_value], [type])

The parameters of the function are:

• rate: The interest rate per period.
• number_of_periods: The total number of payment periods in the life of the loan.
• present_value: The present value, or the total amount that a series of future payments is worth now.
• future_value: The future value, or a cash balance you want to attain after the last payment is made. If omitted, the default value is 0.
• type: When payments are due. If omitted, the default is 0 (payments are due at the end of the period). 1 represents payments made at the beginning of the period.

Here is an example of how to use the PMT function in Google Sheets:

=PMT(5%/12, 60, 100000)

This will calculate the monthly payment for a 5% annual interest rate, paid monthly, over 60 months for a loan of $100,000. The result will be a negative number, which represents an outflow of cash.