Administration and Executive AssistantTier 435 minintermediate

PMT and Loan Repayment Maths

Calculate a monthly loan repayment and the total interest paid over its term.

What you will learn

• Use PMT to calculate a monthly repayment from a principal, rate and term
• Explain why PMT returns a negative number and handle its sign correctly
• Calculate total interest paid as total repayments minus the original principal, not from the annual rate alone

Excel skills

PMT, FV, NPV · Financial Functions

The task

Twelve loan applications need their monthly repayment and total interest worked out from the principal, annual rate and term on the Loans tab, before they go to the credit committee.

You work in a real spreadsheet in your browser, and your answer is checked against hidden traps the moment you submit.

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