Try this example: Suppose you borrow $$10,000$ for $5$ years and pay $$288$ per month. Find the interest rate per month.

When we need to find the constant payments per period, we will use the pmt$()$ function. Its syntax is $=$PMT$($rate$,$ nper, pv$,[$fv$],[$type$]).$ Again, the parameters enclosed in square brackets $-$ fv and type are optional

and have default values equal to $0.$

Try this example: Suppose you borrow $$20,000$ for $6$ years. If the payments need to be paid per month and the stated annual rate is $24\%$ per year, find the monthly payment.

PMT

Status: Enter function

By now, you would have realized that Excel uses at least one opposite sign in TVM$.$ Therefore, sometimes even the output would have a negative sign. In the assignment questions, we will try to use signs such that

the output on Excel generates positive values for dollar amounts. For this assignment, do not use the negative sign before any formula, but rather change the signs of the inputs to the formula.