Satsuma Loans - Pre Loaded Interest?

TrickyDicky101

Mobeer wrote: »

Then you need to multiply by 12, not compound:

Original documentation:
https://msdn.microsoft.com/en-us/vba/excel-vba/articles/worksheetfunction-pmt-method-excel

A worked example:
http://www.exceltactics.com/car-loan-calculator-part-1-collecting-variables-and-calculating-payments-using-the-pmt-function/

What has the PMT function to do with an APR?

PMT is Excel's implementation of the annuity formula - it uses parameters to generate the annuity payment (one of which is the flat periodic rate of interest). An annuity in this instance is the same as a fixed rate loan repayment.

Anyway, as alluded to in my previous post, Satsuma uses an example on their website which quotes an APR consistent with how I described to calculate it above.

And yes, you do need to compound the flat rate.