Navigation: Templates > Guide to all Templates > Additional Libraries and Templates > Finance Library >====== PMT (payment of annuity) ====== | |

**PMT**(*presentvalue,periods,rate,futurevalue*)

PMT | Computes the payment required to reach a targeted future value. |

presentvalue | A numeric constant or variable containing the amount of the present value of the investment. |

periods | A numeric constant or variable containing the number of periods in which a payment is made. |

Rate | A numeric constant or variable containing the periodic rate of return. |

futurevalue | A numeric constant or variable containing the amount of the desired or targeted future value of the investment. |

**PMT **determines the payment required to reach a desired amount (*futurevalue*) based upon a starting amount (*presentvalue*), a total number of periods (*periods*), and a periodic interest rate (*rate*). If payments occur at the beginning of each period then use the PREPMT function, which takes into account the added interest earned on each period's payment.

Periodic rate may be calculated as follows:

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100)

If the present value is less than the future value (annuities), payments are positive, and conversely, if the present value is greater than the future value (loans), payments are negative.

**Return Data Type:** DECIMAL

**Internal Formulas:**

where frac(periods) is the fractional portion of the *periods *parameter and

where int(periods) is the integer portion of the *periods *parameter.

**Example:**

** PeriodicRate = AnnualRate / (PeriodsPerYear * 100)**

** IF TimeOfPayment = 'Beginning of Periods'**

** Payment = PREPMT(PresentValue,TotalPeriods,PeriodicRate,FutureValue)**

** ELSE**

** Payment = PMT(PresentValue,TotalPeriods,PeriodicRate,FutureValue)**

** END**