Present value of annuity formula excel

An annuity is a series of payments made at regular intervals, and they can be used for a variety of financial situations, such as retirement planning, mortgages, and investments.

In this tutorial, we will show you how to use the built-in functions in Excel to calculate an annuity payment.

In this example, we have the goal of earning $300,000 in 10 years, which grows at an annual rate of 6%.

To do this, we will use the PMT function.

Annuity loan calculator excel

The PMT function in Excel is used to calculate an annuity payment for a loan or investment. The PMT function takes four inputs: rate, nper, pv, fv, and type.

• The rate is the interest rate of the loan or investment, which in this case is 6%.
• The nper is the total number of payments or the number of periods, which in this case is 10.
• The pv is the present value, which is the current value of the loan or investment.

  In this example, it is assumed to be zero because it is just starting out.

• The fv is the final value, which indicates the goal of the payment. In this example, we want to earn 300,000.
• The type is either 0 or 1, indicating wh
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