Microsoft Office Tutorials and References
In Depth Information
To select the PMT function using the Insert Function dialog box:
1. With E11 as the active cell, click the Insert Function button
on the Formula bar. The
Insert Function dialog box opens.
To locate the PMT function, you’ll enter a text description of this function in the Search for
a function text box.
2. Type loan payment in the Search for a function text box, and then click the Go button.
Excel displays a list of functions related to loan payments. See Figure 2-26.
Searching for functions related to loan payments
c lick to search
for a function
enter a descriptio n
of the function you
want to use
functio ns related
to loan payments
3. Verify that PMT is selected in the list of functions, read the description provided in the
lower portion of the dialog box, and then click the OK button. The Function Arguments dia-
log box for the PMT function opens, as shown in Figure 2-27.
Function Arguments dialog box for the PMT function
Note that, in the Function Arguments dialog box, required arguments are displayed in a
boldfaced font, whereas optional arguments are not. Neither the Fv nor Type argument is
displayed in a bold font. You will use this dialog box to enter values for the PMT function’s
arguments. The first argument that you will enter is for the rate, which is determined by
dividing the annual interest rate by the number of payment periods in a year.