PMT stands for "Payment," and it is a formula used in financial analysis to calculate the payment required for a loan or investment over a period of time. The PMT formula takes into account the size of the loan, the interest rate, and the time period to arrive at the required regular payment amount. This formula is commonly used in the calculation of mortgage payments, car payments, and other types of loans with fixed repayment schedules. It can also be used to determine the regular payment amount required to achieve a certain investment goal. The PMT formula is often used in Excel and other spreadsheet programs to automate the calculation of payment amounts.
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