Saving Towards a Financial Target: Using Excel's PMT Formula
The Excel PMT function is not only useful in calculating periodic payments on loans, it is also useful in calculating the periodic monthly savings amount you need to set aside to reach a financial goal. Let’s take the following example: Question Mr. Binfo wants to save towards his child’s education. Her daughter will need at least GH¢12,000 to make it through Primary School. Mr. Binfo wants to set aside a monthly savings amount to enable him to raise at least GH¢12,000 in the