Multiple choice technology

Which function calculates your monthly mortgage payment?

  1. PMT (payments)

  2. NPER (number of periods)

  3. PV (present value)

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The PMT function calculates the payment amount for a loan based on constant payments and a constant interest rate. While it's not exclusively for mortgages (it works for any loan with regular payments like car loans or personal loans), it's commonly used for mortgage calculations. The function uses the loan amount (PV), interest rate, and number of periods to compute the periodic payment.

Keep practicing — related questions