How to Use PMT Function in WPS Office (A Step-by-Step Guide)

In a world of financial complexity, the PMT function in WPS Office shines as a solution. Yet, Excel formulas pose a challenge. How to use Excel PMT function in WPS Office? Find the complete guide here.

Part 1. What is Excel PMT Function in WPS Office?

The PMT function in WPS Office calculates periodic loan or investment payments. Its syntax is as follows:

• rate (required): The interest rate for each payment period. It must be in the same periodic terms as "nper" and "pv."

• nper (required): The total number of payment periods or periods over which the loan or investment will be paid off.

• pv (required): The present value or the total loan amount or investment's initial cost.

• fv (optional): The future value or the desired balance remaining after the last payment. If omitted, it's assumed to be 0.

• type (optional): This parameter specifies whether payments are made at the beginning (1) or end (0) of each period. If omitted, it's assumed to be 0 (end of the period).

The PMT function in WPS Office simplifies financial planning, helping you calculate regular payments for loans or investments accurately.

Part 2: How to Use Excel PMT Function in WPS:

Using Excel PMT Function in WPS for Monthly Calculation

Step 1: Open Spreadsheet: Launch WPS Office and open your spreadsheet.

Step 2: Select Cell: Choose where you want the result.

Step 3: Enter PMT Function: Use this syntax: =PMT (rate, nper, pv, [fv], [type]).

• Rate: Monthly interest rate.

• Nper: Total payment periods.

• PV: Loan amount.

• FV: Usually 0.

• Type: 0 for end-of-month payments.

Step 4: Press Enter: The cell displays the monthly payment.

Tips: It's important to note that the most challenging part of using the PMT function is ensuring you input the correct values for rate, nper, pv, fv, and type. Additionally, understanding the significance of each parameter is crucial for accurate calculations.

Let's walk through an example of using the Excel PMT function in WPS for a monthly loan payment calculation.

Scenario: You've taken out a $100,000 loan with an annual interest rate of 5%, and you want to calculate the monthly payment for a 20-year term.

Step 1: Open Spreadsheet: In WPS Office, open your spreadsheet.

Step 2: Select Cell: Choose where you want the result; let's use cell B2.

Step 3: Enter PMT Function: Type =PMT (5%/12, 20*12, 100000, 0, 0) in cell B2.

Step 4: Press Enter: Cell B2 displays the monthly payment, approximately $659.96.

Using Excel PMT Function in WPS for Quarterly Calculation

Step 1: Open Your Spreadsheet: Launch WPS Office and open your spreadsheet.

Step 2: Select a Cell: Choose where you want the result; let's use cell B2.

Step 3: Enter the PMT Function: Type =PMT (rate/4, 5*4, 100000, 0, 0) in cell B2.

• Rate: Divide the annual rate by 4 for quarterly (e.g., 5% annual becomes 5%/4).

• Nper: Multiply the loan term in years by 4 for quarters (e.g., 5 years becomes 5*4).

• PV: Enter the loan amount, such as $100,000.

• FV: Usually 0 for full repayment.

• Type: Use 0 for end-of-quarter payments.

Step 4: Press Enter: Cell B2 displays the calculated quarterly payment.

The displayed result is the quarterly payment you need to make to repay the loan over the specified period. It includes both principal and interest for each quarter.

Part 3. Work with WPS: An All-in-one Office Suite

WPS Office is a free and open-source office suite that is compatible with Microsoft Office. It includes a word processor, spreadsheet, presentation software, and PDF reader. WPS Office is available for Windows, macOS, Linux, Android, and iOS.

Here are some of the features of WPS Office:

• Compatible with Microsoft Office files

• Cloud storage

• Collaboration tools

• Mobile apps

• Free and open source

Here is a brief comparison of WPS Office and Microsoft Office:

Overall, WPS Office is a powerful and feature-rich office suite that is a great alternative to Microsoft Office. It is free to use, compatible with Microsoft Office files, and offers a variety of features, including cloud storage, collaboration tools, and mobile apps.

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FAQs 

1.How do I use IPMT in Excel?

Step 1: Open Excel: Launch Excel and open your spreadsheet.

Step 2: Select a Cell: Choose where you want the result, e.g., cell B2.

Step 3: Enter IPMT Function: Type =IPMT (rate, period, nper, pv, [fv], [type]) in the selected cell.

Adjust parameters accordingly:

• rate: Interest rate per period.

• period: Payment period you want to calculate.

• nper: Total payment periods.

• pv: Initial loan amount or investment.

• fv (usually 0): Future value after the last payment.

• type (usually 0): Payment timing (end of the period).

Step 4: Press Enter: The cell will show the interest payment for the specified period.

2. What is the shortcut key to merge two tables?

In Microsoft Excel, there isn't a direct shortcut key for merging two tables. To merge tables, copy the first table (Ctrl+C) and paste it (Ctrl+V) where you want to merge it. Adjust formatting as needed. For software-specific shortcuts, consult the documentation.

3. What is the difference between PMT and PPMT in Excel?

Summary

This article is a practical guide for using the PMT function in WPS Office, an alternative to Microsoft Office. It covers the function's syntax, provides examples for monthly and quarterly calculations, introduces WPS Office features, and positions it as a valuable Microsoft Office substitute.