Is there a formula in Excel to solve for a maximum lease payment?

Question

Is there a formula in Excel to solve for a maximum lease payment when you know the total present value of future lease payments, the interest rate, and the number of periods?

Answer 1

Given the present value of a loan, the interest rate and the number of periods you can use Excel's PMT() function to solve for the lease payment. For example, if the present value of the loan is $5,300, the number of periods is 36 months and the annual interest rate is 8% then the formula to solve for the payment would be

=PMT(8%/12,36,-5300,0) which is $166.