Multiple choice technology

Which function calculates your monthly mortgage payment?

  1. PMT

  2. NPER

  3. NV

  4. PV
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The PMT function calculates loan payments using the interest rate, number of periods, and loan amount. NPER calculates how many periods, PV is present value (loan amount), and FV is future value.

AI explanation

To calculate your monthly mortgage payment, you would use the PMT function.

Option A) PMT - This option is correct because the PMT function in finance calculates the monthly payment for a loan or mortgage. It takes into account the principal amount, interest rate, and loan duration.

Option B) NPER - This option is incorrect because the NPER function calculates the number of periods required to pay off a loan or investment. It does not calculate the monthly payment amount.

Option C) NV - This option is incorrect because there is no such function as NV in finance. It does not calculate the monthly mortgage payment.

Option D) PV - This option is incorrect because the PV function calculates the present value of a future payment or investment. It does not calculate the monthly mortgage payment amount.

Therefore, the correct answer is option A) PMT.

Keep practicing — related questions