Installment loan refers to the provision of a certain amount of principal to the borrower, and the borrower must repay a fixed amount of loan in installments (monthly, quarterly and yearly) until a certain year.
There are usually two ways to repay the loan:
One is called average capital. Calculation formula of average capital loan: monthly repayment amount = (loan principal/repayment months) (principal-accumulated amount of repaid principal) × monthly interest rate.
One is called: matching principal and interest, that is, paying the same amount of loans (including principal and interest) every month during the repayment period. Monthly repayment amount = [loan principal × monthly interest rate ×( 1 interest rate )× repayment months ]=[( 1 interest rate )× repayment months]
Extended data:
PMT function is used to calculate the installment amount of loan repayment according to fixed interest rate and equal installment payment.
Syntax: =PMT(rate, nper, pv, fv, type)
The meaning of each parameter is as follows:
Interest rate: loan interest rate. If the annual loan interest is 0.06, the monthly repayment interest is 0.06/ 12.
Nper: The total repayment amount of this loan usually refers to the total monthly repayment amount of this loan. If a loan is repaid every year for 65,438+05 years, it is 65,438+0,565,438+02.
The present value of Pv is the total repayment amount. For example, if the loan is 250,000 yuan, 250,000 yuan should be filled in this item.
Fv is the future value, which refers to the expected future value or cash balance after paying off the loan. Usually optional, the default is 0.
Enter the number 0 or 1 to specify whether the payment time of each cycle is at the beginning or the end. Type=0 or omitted, indicating "end of period", and Type= 1 indicating "beginning of period".