How to Calculate Equal Monthly Payments

Using a Math Equation

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We have learnt how to calculate the equal monthly payments or instalments using the PMT function. In fact, using the same function we have also prepared a complete loan amortization schedule. Many people, specially the accountants and math oriented finance personnel, wish to understand the background of the calculation. So we demonstrate in the video below how tocalculate the equal monthly payments for a loan based on a mathematical equation.







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