State the parameters of Excel's 'PMT' function. What is the use of this function? Explain.

The parameters of the PMT function are as follows: Rate: Interest rate per period for the loan Nper: Toal no. of payments for the loan. Its units should match with the units of interest rate. PV: Present value, i.e. loan amount. FV: Future value, which is taken as zero is the balance at the end of the loan period. Type: Whether payment is made at the beginning (Value=$\displaystyle 1$) or at the end (Value=$\displaystyle 0$) of the period. Uses of PMT function This function calculates the periodic payment for an annuity assuming equal payments and a constant rate of interest.