How to: PMT Function in Excel 2003

1. Click on an empty cell in the Excel 2003 worksheet and then type PMT( interest_rate, number_payments, PV).
2. Replace 'interest_rate' with the actual interest rate. For monthly payments, divide the interest rate by 12 and for weekly payments, divide by 52. For example if you have a 6 percent interest rate and will be making monthly payments, type '6%/12.'
3. Replace 'number_payments' with the number of payments to be made. For example, if you have four years of monthly loan payments, then type '4*12.'
4. Replace 'PV' with the loan's principal value. For example, if you have a $6,500 loan then type '$6500.' In this example, the final function should read 'PMT(6%/12, 4*52, 6500).'
5. Press the 'Enter' key to get the monthly payment.