PMT explained
Honest truth: you'll never really use the PMT function in anything other than finance.
And straight up, finance can be boring. So let's just bulldoze through this as fast as possible so we get 'er done.
PMT functions are primarily used with two financial instruments: loans and annuities. But within what aspect of these do PMT functions contribute?
The PMT function is used primarily with loans (to calculate periodical payments) and annuities (to calculate returns).
That's all you need to know for now. Let's jump into coding a PMT function with a loan!
Coding a PMT function (loan)
Given the following loan situation, let's code a PMT function to figure out our yearly payment.
Loan amount = $10,000
Interest rate = 6.2%
Periods (in years) = 5
To start, let's check out the PMT function template:
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I’m a Miami University (OH) 2021 alumni who majored in Information Systems. At Miami, I tutored students in Python, SQL, JavaScript, and HTML for 2+ years. I’m a huge fantasy football fan, Marvel nerd, and love hanging out with my friends here in Chicago where I currently reside.