Calculates the periodic payment for an annuity investment based on constant-amount periodic payments and a constant interest rate.
PMT(rate, total_periods, present_value, [future_value], [type])
- rate - The annualized rate of interest.
- total_periods - The total number of payment periods.
- present_value - The present value of the annuity.
- future_value - [OPTIONAL] The future value remaining after the final payment has been made.
- type - [OPTIONAL] The due date type for the payment – at the beginning (0) or end of each period (1).
PMT(0.4,60,1000,5000) returns 400 - the periodic payment to make for 60 periods to achieve a future value of 5000.
- Ensure that consistent units are used for rate and total_periods.