5g: PMTAλ()

Description

PMTAλ()

Determine monthly payment amount for commercial loans using either of these accrual methods: Actual/360, Actual/365, or Actual/Actual. While this will calculate 30/360 accrual method, we should try to use Excel's PMT() for that instead of this.

Syntax

PMTAλ( APR, TermInMonths, DebtAmount, StartDate, AccrualMethod, [Tolerance])

Arguments:

APR
(Required) Annual interest rate

TermInMonths
(Required) Count of months from first payment due to end of term (inclusive).

DebtAmount
(Required) Debt amount when first payment is due.

StartDate
(Required) Date when first payment is due

AccrualMethod
(Required) Select: 1=30/360, 2=Actual/360, 3=Actual/365, or 4=Actual/Actual

Tolerance
(Optional) Returns a result within this tolerance. Default = .001.

Integrity Check

To know this function is working as intended, check that the absolute value of the closing balance in the term's last period is less than .001.

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