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Ravi Chauhan • 9.57K Points
Tutor III

Q. Which function calculates your monthly mortage payment ?

(A) PMT (payments)
(B) NPER (number of periods)
(C) PV (presént value)
(D) All of above
Explanation by: Ravi Chauhan
The correct answer is (1) PMT (payments). The PMT function is commonly used to calculate the monthly mortgage payment. It takes into account the interest rate, the number of periods, and the present value of the mortgage to calculate the fixed monthly payment amount. The NPER function is used to calculate the number of periods required to pay off a loan, and the PV function is used to calculate the present value or loan amount. However, in the context of calculating the monthly mortgage payment, the PMT function is the most appropriate choice.

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