The amount may contain max two digits after its decimal point.
The amount entered may contain a comma (,) or point (.) as a decimal point separator.
Do not use the thousands separator in the amount.
Correct entered amounts
5123.04
5123,04
6123
Incorrect entered amounts
5,123.04
5.123,04
5123.041
The periodic payment amount (PMT) equation:
| PMT = | FV * (R/N) | and | FV = N * T * PMT + I |
| (1 + (R / N))N * T -1 |
where:FV = Future value
I = Interest amount
R = Nominal interest rate per year (as a decimal, not in percentage)
T = Time period in years
N = Number of compounding periods in one year
PMT = Periodic payment amount, paid at the end of each payment period
Note:
A sinking fund is when we know the future value of the annuity and wish to calculate the periodic payment amount.