Microsoft Excel Tutorial: Payment Functions and Loans

This video tutorial covers the concept of payment functions and loans, focusing on equated monthly installments. It introduces the PMT function, which calculates loan payments including principal and interest but excluding taxes. The tutorial explains the formula components such as rate, nper, and PV, and discusses optional values like future value and payment type. An example calculation is provided to demonstrate the application of the PMT function, resulting in a monthly installment amount. The session concludes with an invitation for questions.

What does the PMT function include in its calculation?

• Principal, interest, and taxes

• Only principal

• Interest and taxes

• Principal and interest

What is the purpose of the PMT function?

• To calculate the total loan amount

• To determine the periodic payment of a loan

• To find the interest rate of a loan

• To calculate taxes on a loan

Which of the following is NOT a component of the PMT formula?

• Rate

• Nper

• PV

• Tax

What is the default value for the 'type' parameter in the PMT formula if no data is provided?

• 1

• 0

• 2

• 3

In the example calculation, what is the monthly loan installment amount?

• Rupees 200.00

• Rupees 148.73

• Rupees 100.50

• Rupees 175.25