Exam Questions and Answers |
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RATE - ANSWER ✔✔calculates the interest rate earned for an
investment given the number of payments made as part of the
investment, the payment amount, and the current value of the
investment.
(nper, pmt, pv, [fv], [type], [guess])
, =RATE(Number of Payments, Monthly Payment Amount, Loan
Amount)*12
EFFECT - ANSWER ✔✔calculates the annual percentage rate for an
interest rate given the number of times per year that interest is charged.
(nominal_rate, npery)
=effect(Interest Rate, Number of Payments per year)
NPER - ANSWER ✔✔calculates the number of payments that will be
made to pay off a loan given the interest rate, payment amount, and
original loan amount.
(rate, pmt, pv, [fv], [type])
=NPER(Interest Rate/12, Monthly Payment Amount, Loan Amount)
PMT - ANSWER ✔✔calculates the payment amount for a loan given
the interest rate, number of payments to be made to pay off the loan,
and the original loan amount.