Payment(redirected from Purchase Payment)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Funds given to another in exchange for goods or services or as reimbursement for money loaned.A mortgage payment may consist of interest only;it could be a combination of principal and interest; or it could also include sums for real estate taxes, property insurance, and/or private mortgage insurance. In order to use Microsoft Excel to calculate your monthly principal and interest payment for a mortgage, do the following:
1. In cell A1, place the annual interest rate.
2. In cell A2, place the number of months of the loan to fully amortize it.
3. In cell A3, place the principal amount of the loan.
4. In cell A4, write the following formula exactly: pmt(A1/12,A2,A3)
5. Cell A4 will calculate your monthly payment.