pmt function in Excel does not return correct monthly payment amou

[Guest]

annual int rate = 5.75
number of months = 360
principle - 320000
PMT answer = (103,667.97)

This is not correct. Can someone advise correct format for computing this
payment amount. Seesm straight forward.

 

[Roger Govier]

Hi

I get an answer of 1867.43
Are you dividing your 5.75% by 12 to get it to a monthly rate?

 

[Niek Otten]

Note that interest rates are expressed as fractions, like 0.0575.
Also note that if the number of periods is in months, the rate should be the
month rate too.

If you still can't solve it, repost here and supply your formulas, values
and expected result please.
--

Kind Regards,

Niek Otten

Microsoft MVP - Excel

 

[Guest]

Great, thanks. I entered the % as 5.75 rather than.0575. The example from
Microsolt Help on PMT is not correct. They show it as 8%.

So, again, thanks.

 

[Guest]

The issue is that I followed the Microsoft guideline and entered the % as
5.75 rather than .0575. I changed it and got the correct answer. Niek Otten
also responded and gave me this direction.

 

[JE McGimpsey]

Not sure what "Microsoft guideline" you were following, but, as Help
shows, you can enter the percentage as

5.75%

rather than

0.0575

Note the % sign.

 

[Roger Govier]

If you enter 5.75% as opposed to 5.75 then Excel will interpret this
correctly for you as .0575.
However, you said in your original post

annual int rate = 5.75
number of months = 360

If that is the case, then you are dealing in months as your periods and the
interest rate has to be expressed as the interest rate per period. Therefore
you need it to be either 5.75% / 12 or 0.0575 / 12 in order to obtain
the correct result.

 

[Fred Smith]

Microsoft Help *is* correct. You can enter "8%" as the rate. However, you
entered only "5.75". That's your problem. You need to enter "5.75%".