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PMT is a financial function used to figure out the loan payments based on constant payments and a constant interest rate.

PMT =P x APR

N1 - ( 1 + APR

N) ^{(-N x Y)}P = Loan amount

APR = Annual percentage rate

N = Number of payments per year (monthly payment means 12 payments in a year)

Y = Term of the loan (number of years)If the interest rate is equal to zero:

PMT = Loan amount ÷ Total number of paymentsExample:

calculate the monthly payment for a loan of $100,000 at an annual rate of 6% and a 5-year term.PMT =

=P x APR/ N 1 - (1 + APR/N) ^{(-N x Y)}

=100,000 x 0.06÷12 1 - (1 + 0.06÷12) ^{(-12 x 5)}

= 1,933.28500 0.259 monthly payment = $1,933.28

total payment number = 12 x 5 = 60 payment

total payment = 60 x 1,933.28 = $115,996.809

total interest = 115,996.809 - 100,000 = $15,996.809

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