The Question : Name and explain the function which returns the future value of an investment which has constant payment and interest.
Solution for the question :
PMT: The PMT function calculates the periodic payment for an annuity assuming equal payments and a constant rate of interest. The syntax of PMT function is as follows: =PMT (rate, nper, pv, [fv], [type]) where
Rate is the interest rate per period,
Nper is the number of periods,
Pv is the present value or the amount the future payments are worth presently, future value or cash balance that after the last payment is made (a future value of zero when we omit this optional argument) Type is the value 0 for payments made at the end of the period or the value 1 for payments made at the beginning of the period.
The PMT function is often used to calculate the payment for mortgage loans that have a fixed rate of interest.
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