# Formula for periodic payment?

Jan 29, 2023Forex Trading Questions

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A periodic payment is a financial transaction in which a set sum of money is paid regularly, typically at fixed intervals. The most common examples of periodic payments are insurance premiums, utility bills, and loan repayments. The formula for calculating a periodic payment is relatively straightforward, and is determined by the amount being borrowed, the interest rate, and the length of the loan.

The periodic payment formula is used to calculate the payment required to pay off a loan or other type of debt over a specified period of time. The formula takes into account the original loan amount, the interest rate, and the number of payments required.

## How do you calculate periodic payment?

This is the formula for compound interest:

r = s * i / (1 + i)

where:

r = the compound interest rate
s = the initial investment amount (principal)
i = the interest rate (expressed as a decimal)

Compound interest is interest that is earned not only on the original investment amount (principal), but also on the accumulated interest from previous periods.

The present value of an annuity is determined by the formula PV = PMT * [1 – (1 / (1+r)^n] / r. This formula takes into account the discount or interest rate (r) and the number of payments (n). The present value represents the total amount of money that you would receive if you were to receive payments for an annuity over a certain period of time.

### What is the formula for periodic payment of annuity due

The formula for the current value of an annuity due is (1 + r) * P {1 – (1 + r) – n} / r. The second method is to make a comparison between the cash movements in an annuity due and an ordinary annuity. The annuity due cash flow becomes equivalent to the ordinary cash flow when (1 + r) is factored.

Periodic payments can be a great way to budget for large expenses or to make sure you are saving enough money for long-term goals. They can also help you avoid debt by making it easier to pay off bills on time.

## What is the example of periodic payment?

A periodic payment is a regular payment that is made at fixed intervals. An example of a periodic payment is a home loan or personal loan repayment. This may sound similar to a direct debit, however, direct debits are arrangements made between a member and a business that authorise the business to deduct agreed amounts from a nominated account.

The PMT function can be used to figure out the periodic payments for a loan, given the loan amount, number of periods, and interest rate. The function returns the loan payment as a number. The arguments for the function are rate (the interest rate for the loan), nper (the number of periods), pv (the present value of the loan), fv (the future value of the loan), and type (the type of loan).

## What is periodic time formula?

The period of oscillation for a pendulum is determined by the frequency of the pendulum. The frequency is the reciprocal of the period, or the number of oscillations per second. The quantity ω is called the angular frequency and is expressed in radians per second. The period of a pendulum is the time it takes for the pendulum to swing back and forth once.

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The hertz unit is used to measure frequency, and is defined as the number of cycles per second. The formula for time is T = 1/f, where T is period and f is frequency. The wave speed c is the speed of light, and is a constant. The formula for wavelength is therefore λ = c/f.

### How do you calculate periodic payment on a deferred annuity

A deferred annuity is an annuity that is held for a period of time before being paid out. This can be done for a number of reasons, such as to defer taxes on the annuity, or to grow the annuity through compound interest. The deferred annuity formula is used to calculate the present value of a deferred annuity. This is the amount of money that would need to be invested today in order to have the annuity pay out the desired amount in the future. To use the deferred annuity formula, you need to know the ordinary annuity payment, the effective rate of interest, the number of periods, and the deferred period.

The process of amortization is a method of ensuring that the loan is paid off in full by the end of the term. The way it works is that each month, a portion of the payment is applied to the principal balance and a portion to the interest.

Starting in month one, the total amount of the loan is multiplied by the interest rate. For a loan with monthly repayments, this result is then divided by 12 to calculate the monthly interest. This interest is then subtracted from the total monthly payment, and the remaining amount is what goes directly toward paying off the principal.

This process is repeated each month until the loan is paid off in full. Amortization ensures that the entire loan is paid off by the end of the term, and not just the principal balance.

## What is the annual periodic payment for repayment?

An annuity is a payment made annually or periodically for a specified period of time. The payments are made to repay the capital amount invested on a property.

The PMT, or payment function, is a financial function that calculates the periodic payment for a loan based on constant payments and a constant interest rate. The function is used in Microsoft Excel and other spreadsheet applications.

### What is quarterly periodic payment

A periodic rate is the interest rate charged for a certain period of time. A daily periodic rate is calculated by dividing the APR by 365 days (or 360 for some companies); a monthly periodic rate is calculated by dividing the APR by 12 months; a quarterly periodic rate is calculated by dividing the APR by four.

The annual percentage rate (APR) is a measure of the cost of borrowing, expressed as a yearly interest rate. It includes the interest rate, points, broker fees, and other charges associated with a loan. The APR is a good way to compare different loans because it tells you the true cost of borrowing. The APR is calculated using the following formula:

APR = (Periodic Interest Rate * 365 Days) * 100

Monthly Payment:

PMT = (Interest Expense / 12, Borrowing Term in Months, Loan Principal)

The APR gives you a true picture of the cost of borrowing, and can help you compare different loans.

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## What is an example of periodic time?

In physics, periodic motion is a type of motion where an object moves in a recurring pattern. Examples of periodic motion include a rocking chair, a bouncing ball, a vibrating tuning fork, a swing in motion, the Earth in its orbit around the Sun, and a water wave.

The period of a periodic variation is the time interval between two successive repetitions of the variation. The periodic time is thus the duration of one cycle of the periodic variation.

### What is periodic time measured in

Period is the time it takes for an object to complete one full cycle of its motion. Frequency is the number of times an object repeats its motion in a given period of time. Hertz is the unit used to measure frequency.

The frequency of a wave is how many times the wave repeats per second. The time it takes for the wave to repeat is called the period. The time it takes for the wave to travel one wavelength is called the phase. The wavelength is the distance between two peaks of the wave. The frequency is inversely proportional to the wavelength. This means that as the wavelength gets shorter, the frequency gets higher. The wave speed is the speed at which the wave travels through a medium. The wavelength and wave speed are directly proportional. This means that as the wavelength gets shorter, the wave speed gets higher.

### What is the formula for time period waves

The velocity of a wave is the speed at which the wave travels through a medium. The wavelength is the distance between two successive peaks or troughs of the wave. The frequency is the number of waves that pass a given point in a period of time.

To find the frequency, we use the formula f = ν λ. This formula simply states that the frequency is equal to the velocity divided by the wavelength.

Once we know the frequency, we can measure the time period using the formula T = 1/f. This formula tells us that the time period is equal to the inverse of the frequency.

Frequency and Period are in reciprocal relationships, which means that as one goes up, the other goes down. This relationship can be expressed mathematically as: Period equals the Total time divided by the Number of cycles.

### What is periodic payment in amortization

A loan is considered to be fully amortized if it is repaid over its term in equal periodic installments. In a fully-amortized loan, each payment is split between interest and principal, with the principal portion gradually decreasing over the life of the loan. By the end of the loan term, the entire principal amount will have been repaid.

An annuity is a nice way to ensure that you have a constant stream of income, especially in retirement. It’s important to remember though that you are generally locked in for a period of time with an annuity, so it’s not as flexible as other investment options.

### What is periodic payment made at the beginning of each payment interval

An annuity due is an annuity in which payments are due or made at the beginning of the payment interval. This type of annuity is often used in business because it allows for earlier payment of expenses.

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The PMT function is used to calculate the periodic payment for a loan. The format of the PMT function is:

=PMT(rate,nper,pv)

where rate is the interest rate per period, nper is the number of payments, and pv is the present value of the loan.

The PMT function can be used for loans with either yearly or monthly payments. For loans with yearly payments, the PMT function is:

=PMT(rate/12,nper*12,pv)

For loans with monthly payments, the PMT function is:

=PMT(rate/12,nper,pv)

The payment for a loan can also be calculated using the following formula:

Payment = pv* apr/12*(1+apr/12)^(nper*12)/((1+apr/12)^(nper*12)-1)

where apr is the annual percentage rate.

### How do I calculate monthly payments using PMT in Excel

The PMT function calculates the monthly payment for a loan. The rate argument is the interest rate per period, the NPER argument is the total number of payments, and the PV is the present value of the loan. The result is a monthly payment of \$966.28.

The monthly periodic interest rate is the rate used to calculate the interest charged on a credit card balance each month. This rate is usually a fraction of the annual percentage rate (APR), and is multiplied by the outstanding balance to determine the amount of interest charged for the month.

### What is the formula of interest rate per period

To calculate the effective annual interest rate, you need to know the nominal interest rate and the number of compounding periods. The formula is simple: you just divide the nominal interest rate by the number of compounding periods and raise it to the power of the number of compounding periods. Then, you subtract 1 from that result.

For example, if you have an investment with a 10% nominal interest rate and it compounds monthly, you would divide 10% by 12 to get 0.833%. Then, you would raise that to the 12th power to get 1.1047. Finally, you would subtract 1 from 1.1047 to get 0.1047, or 10.47%. That is the effective annual interest rate on your investment.

A function is considered periodic if it repeats itself at regular intervals. This means that the function will have the same value at certain points in its domain. The least period, or the shortest interval at which the function repeats itself, is known as the period of the function.

## Conclusion

There is no one-size-fits-all answer to this question, as the formula for periodic payments will vary depending on the specific terms of the loan or credit agreement in question. However, as a general overview, the periodic payment on a loan or credit account is typically calculated by taking the total amount owed, divide it by the number of months in the loan/ credit term, and then adding any additional fees or charges that may be applicable.

The following is a formula for periodic payment: P = 1/r [1-(1+r)^(-n)] where P is the periodic payment amount, r is the monthly interest rate, and n is the number of payments. This formula can be used to calculate the periodic payment amount for any type of loan.

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