Entering the PMT() formula
In this example, you will need to enter the required inputs, including the PMT() function.
You will need to make sure
This loan is as follows:
- Loan balance is $10,000.
- Interest is 6%, payable monthly.
- Loan amortizes for 1 year.
- No optional parameters are required.
Remember to include a negative before the PMT() formula, as a negative value will be treated as a negative payment!
Use absolute (dollar sign) referencing in the PMT() formula.
This exercise is part of the course
Loan Amortization in Google Sheets
Exercise instructions
- In cell
E6, enter the loan balance. - In cell
E1, enter the effective interest rate; the annual interest rate divided by the number of annual periods. - In cell
E2, enter the number of amortization periods on the loan. - In cell
E3, enter the correctPMT()formula, referring to the cells with the interest rate, balance, and number of periods.
Hands-on interactive exercise
Turn theory into action with one of our interactive exercises
Start Exercise