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PMT function isnt working correctly?

Anonymous
2014-03-11T14:12:50+00:00

im trying to use the pmt function to calculate regular monthly payments for a mortgage and it just says the payment is £0.00

my task is this:

Rishi and Sadi Kahn have decided to take out a £130,000 mortgage over 20 years. A

4.74% APR fixed rate is available. They plan to make an overpayment of £100 each

month.

here is what ive tried to input in the pmt dialog box:

Microsoft 365 and Office | Excel | For home | Windows

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Anonymous
2014-03-11T16:50:31+00:00

ALL of the annuity functions work that way.  From HELP:

In annuity functions, cash you pay out, such as a deposit to savings, is represented by a negative number; cash you receive, such as a dividend check, is represented by a positive number.

In this case, since you are paying money to the bank, it is represented by a negative number.

You can reverse the convention; the important concept is to be consistent.

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  1. Anonymous
    2014-03-11T16:57:25+00:00

    oh okay thanks

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  2. Anonymous
    2014-03-11T16:20:17+00:00

    yeah sorry ive realised that now but why is it a negative value?

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  3. Anonymous
    2014-03-11T15:51:31+00:00

    How can it be zero?

    Even the screen shot provided by you is showing Formula result as -836.54

    I also tried and getting the same result.

    Could you please clarify.

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