Based on period interest rate, number of periods, and loan amount, this function calculates the repayment of the loan such that it would be paid off fully at the end of the loan. This function is designed to be equivalent to the Excel function PMT. It calculates based on a fixed interest rate, FV=0, and charging is at the end of the period. Response is rounded to 2dp
PMT(rate, nper, pv)
| rate | The nominal interest rate per period (should be positive) |
|---|---|
| nper | Number of periods |
| pv | Present value i.e. loan advance (should be positive) |
pmt Instalment per period (should be negative)
PMT(0.1,12,3000) # =-440.29 taken from excel#> [1] -440.29df<-data.frame(rate=c(.1,.2),nper=c(12,24),pv=c(3000,1000)) PMT(df$rate,df$nper,df$pv) # =-440.29,-202.55 taken from excel#> [1] -440.29 -202.55