Time value of money series - systematic investments with pmt function of excel

time value of money series

Level - BASIC

Learn how Excel can be used to estimate the amount of systematic savings needed to achieve a future financial goal.

AUTHOR(S): Taruna Changulani

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Time Value of Money Series - Systematic Investments with PMT function of Excel

 Learn how Excel can be used to estimate the amount of systematic savings needed to achieve a future financial goal.

1 2 3

    1.If the PMT function is to be used to calculate the monthly investment needed to reach a goal value, then which of the following is true?



  • The time period for calculation should be number of months multiplied by 12
  • The amount used should be the annual payment amount
  • The rate used for calculation should be the expected annual rate divided by 12
  • 2.Which of the following has to be true while using PMT function in excel?



  • Payments or amount invested can be variable across the time periods
  • The time horizon can be split into unequal periods
  • Interest rate has to be constant across the time horizon
  • 3.What does Type = 1 in the PMT function refer to?



  • Payments are due at the end of the period
  • Payments are due in the middle of the period
  • Payments are due at the beginning of the period
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