I have data inside spreadsheet and it is calculationg based on formula to calculate Monthly payemnt.
Now I am implementing this functionality in my HTML using with JS but I don't understand this formula:
=-PV((L14/100/12),I14*12,F14)
Can somboday explain me how to caluclate this formula, with my example code.
I will thankfull If you explain me.
Thanks.
The present value of finite periodic payment follows the formula: $$0 = PV + \frac{PMT}{i}\left[1-(1+i)^{-n}\right]$$
where $i$ is the interest rate per period, $n$ is the number of periods, and $PMT$ is the payment per period. The negative sign in your spreadsheet considers the direction of cashflow: if you receives $PV$ now (inflow), then you have to pay $PMT$ (outflow) for $n$ periods.
Given the annual rate of $5\%$, then the rate per month is $i = \frac{0.05}{12}$, and the number of payment months is $ n = 40 \times 12$. The payment per month is $PMT = 57865$ in your example.
$$-PV = \frac{57865}{0.05/12}\left[1-\left(1+\frac{0.05}{12}\right)^{-40\times12}\right] \approx12000292$$