PMT

[Roohbir Singh MBCS]

i have been trying to enter the PMT function in a loan spreadsheet in excel.
the result i get is in negative. can anyone tell me what is going to be the
formula if for example the principal is 1000, rate is 8% p a and time is 3
years and we want the monthly payment.
thanks in advance.

 

[Bernard Liengme]

All is well. Cash flows to you OR away from you. You have a positive PV
(loan) - the cash flowed from bank to you. Now you pay back loan; cash flows
from you to bank. We use different signs for different directions. If you
are unhappy with neg value use =-PMT(.....
best wishes

 

[Roohbir Singh MBCS]

thanks a lot bernard. much appreciated.

All is well. Cash flows to you OR away from you. You have a positive PV
(loan) - the cash flowed from bank to you. Now you pay back loan; cash
flows from you to bank. We use different signs for different directions.
If you are unhappy with neg value use =-PMT(.....
best wishes