![]() The results inside the parentheses, (1+ r), from the previous step must now be raised to the power of "n." Again, this "n" represents the total number of payments. Don't worry about the other two values leaving them blank will make the program assume their correct value of 0.For this example, imagine you have a $100,000 loan.pv stands for "present value" but here it simply means the principal of your loan.So, your "nper" value, or your number of payments, would be 12*15, or 180. Imagine for this example that you have a 15-year mortgage.For a monthly payment, this would be 12 times the number of years on your loan. ![]() nper is short for "number of periods" and simply represents how many payments you will make on your loan.This will be your monthly interest you will use to calculate mortgage payments. The mortgage calculator can be use like any loan calculator. You can use the mortgage calculator to calculate house mortgage, auto loans or other types of loans. However, this number must be input in the equation as decimal, so we divide again by 100. Mortgage Calculator Calculates mortgage and loan payments given principal, interest and term. For example, if your annual interest rate is 6%, you would divide this number by twelve to get your monthly interest rate.The calculator also shows how much money and how many years you can save by making prepayments. It should also be expressed as a decimal. This calculator determines your mortgage payment and provides you with a mortgage payment schedule. Note that this will be your annual interest rate (the quoted rate on your loan agreement, like 4 or 5 percent) divided by 12. rate stands for the monthly interest rate.The first three represent required inputs, while the last two are optional. The program will then prompt you for the proper entries into each part of the function by showing the following: PMT(rate, nper, pv,, ). Start using the PMT function by typing =PMT( into your spreadsheet.
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