Forum Discussion
Problems wit PV function
So I am using the PV function to calculate a loan amount in a spread sheet and I cannot get it to return a correct value. Keep in mind I began doing spreadsheet with Visicalc in 1983 and have been using Excel for well over 25 years so I know how to set it up. Here is the practical side of the calculation. I have a pmt of 2840, a rate 8% and a term of 360 months and it is returning a value of -51120 which should be 387045.12. Has anyone had the same experience and found a solution?
I assume that the rate is yearly, but the number of periods is months. You have to take that into account: divide the rate by 12 in the formula:
(Payments are negative)
Thank you Hans. As I mentioned I have been doing this since 1983 and also since Excel has been in existence. I have the formula right but there is some sort of glitch in the 365 version. I cannot figure irt out. HansVogelaar
Eligible for Principal & Interest -2840 Rate 0.67 8 % * Term (months) 360 * Loan Amount $51,120.00 Either enter 8% in the cell with the yearly interest rate, or if you prefer to keep it at 8, divide the result of the formula for the monthly interest rate by 100: it should return 0.67% or 0.0067
