what is pmt in finance

what is pmt in finance

1 year ago 101
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PMT stands for "payment" and is a function used in finance to calculate payments that are due at specific frequencies, such as loans or mortgages. The PMT function calculates the payment for a loan based on constant payments and a constant interest rate. To calculate a payment, the number of periods, interest rate per period, and present value are used. The PMT function is often used by businesses to calculate their monthly repayments on a business loan or to calculate payments due to the business from customer finance deals. The PMT function can also be used to calculate mortgage repayments, annuity payments, and loan repayments.

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