Negative vs Positive?

JJ in SD

Active Member
Joined
Jul 30, 2002
Messages
316
Good morning,

Why does this formula =PMT(4.25%/12,60,10000) return a negative
(-185.30) instead of a positive (185.30) result, and how do I correct it?

Thanks in advance,
JJ in SD
 

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=abs(reference) will give you the positive interger value of the reference - always positive.

HTH
 

Aladin Akyurek

MrExcel MVP
Joined
Feb 14, 2002
Messages
85,201
firefytr said:
=abs(reference) will give you the positive interger value of the reference - always positive....

Given that PMT always returns a neg figure:

=-PMT(4.25%/12,60,10000)

which means one less function call
 

Juan Pablo González

MrExcel MVP
Joined
Feb 8, 2002
Messages
11,959
And just to give a little background on why it returns a negative amount...

Assuming that scenario that you have, consider that you're applying for a loan, and the bank gives you $1000.

Now, in YOUR balance, you see a credit of +1000, correct ?

Now, the bank tells you, ok, every month you must pay 185.30.

What that means is that in YOUR balance, you'll have a debit o 185.30, correct ? that, mathematically, represents -185.30, to "compensate" for the +1000 that you received.

If you changed the formula to

=PMT(4.25%/12,60,-10000)

where -10000 represents for example, an investment (A debit in your balance), Excel would return

+185.30

, in other words, the earnings of that investment, positive, to "compensate" for the investment.

Does that help ?
 

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