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PMT: monthly laptop installment

Naufal just started a job in Jakarta and needs a laptop that costs Rp12,000,000. His office cooperative offers a 12-month loan at 1% interest per month (annuity). Naufal wants to know the monthly installment before applying.

Task

In B5, calculate the monthly installment with PMT using the rate in B2, the term in B3 and the loan amount in B1. Show the result as a positive number.

Cells to fillB5

Required functionsPMT

Expected result

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Hint 1
The basic shape is PMT(rate, nper, pv): the rate per period, the number of periods and the present value of the loan.
Hint 2
The rate and the term must use the same unit. Here both are already monthly, so you can use them as they are.
Hint 3
PMT returns a negative number because the installment is money going out. Put a minus before the loan: =PMT(B2, B3, -…).

Reveal them one at a time. The last hint nearly gives the answer away.

Give it a try first. The solution unlocks automatically after your first check.

Answer

B5

=PMT(B2,B3,-B1)

Explanation

=PMT(B2,B3,-B1) gives about Rp1,066,185 a month. Over 12 months that totals about Rp12.79 million, so the interest is about Rp794 thousand. The most common mistake is combining an annual rate with a monthly term (say 12% with 12 months), which inflates the installment. If the rate is given per year, divide it by 12 first.

Starting worksheet: Sheet1
Row	A	B
1	Laptop price (loan)	12,000,000
2	Monthly interest	1.0%
3	Term (months)	12
4
5	Monthly installment
6
7
8
9
10
11
12
13
14

Fill in the requested cell, then press Check answer.

Validation result