I don't understand your question. If you want to earn 20%, charge 20% interest. If you solve for x in the equation you showed, you will get a monthly rate that gives you a monthly payment of 0.2 (in the currency of interest).On 2002-07-23 08:09, mscheske wrote:

Does anyone know the mathematical formula behind the PMT formula? I want to earn 20% and I want to know what interest rate to charge. ie. .2=PMT(1000,36,x/12) -> Solve for x.

Thanks for any help.

If you want an introduction to a generalized solution for problems where the payment amount is invariant, check http://www.aemsinc.com/fincalc/index.html. Scroll down and click the button 'How we calculate the numbers.'

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