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Calculates the repayment for a loan

Source: R/PMT.R
PMT.Rd

Based on period interest rate, number of periods, and loan amount, this function calculates the repayment of the loan such that it would be paid off fully at the end of the loan. This function is designed to be equivalent to the Excel function PMT. It calculates based on a fixed interest rate, FV=0, and charging is at the end of the period. Response is rounded to 2dp

Usage

PMT(rate, nper, pv)

Arguments

rate

The nominal interest rate per period (should be positive)

nper

Number of periods

pv

Present value i.e. loan advance (should be positive)

Value

pmt Instalment per period (should be negative)

See also

PV RATE

Other finance: APR(), PV(), RATE()

Examples

PMT(0.1,12,3000) # =-440.29 taken from excel
#> [1] -440.29

df<-data.frame(rate=c(.1,.2),nper=c(12,24),pv=c(3000,1000))
PMT(df$rate,df$nper,df$pv) # =-440.29,-202.55 taken from excel
#> [1] -440.29 -202.55