Sam would like to use the PMT function in Excel to calculate the monthly payments on a car loan of $35,000 which is to be paid off in full after 3 years. Interest is charged at a rate of 4.43% per year and the payment to the loan is to be made at the end of each month. Which function argument is correct? (Reminder: =PMT(rate, nper, pv, [FV], [type]) =PMT( 4.43%, 36, -35000) =PMT( 4.43%/12, 36, -35000) =PMT( 4.43%/12, 3, -35000) =PMT( 4.43%, 3, -35000)
Sam would like to use the PMT function in Excel to calculate the monthly payments on a car loan of $35,000 which is to be paid off in full after 3 years. Interest is charged at a rate of 4.43% per year and the payment to the loan is to be made at the end of each month. Which function argument is correct? (Reminder: =PMT(rate, nper, pv, [FV], [type]) =PMT( 4.43%, 36, -35000) =PMT( 4.43%/12, 36, -35000) =PMT( 4.43%/12, 3, -35000) =PMT( 4.43%, 3, -35000)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
![Sam would like to use the PMT function in Excel to calculate the
monthly payments on a car loan of $35,000 which is to be paid off
in full after 3 years. Interest is charged at a rate of 4.43% per year
and the payment to the loan is to be made at the end of each
month. Which function argument is correct?
(Reminder: =PMT(rate, nper, pv, [FV], [type])
=PMT( 4.43%, 36, -35000)
=PMT( 4.43%/12, 36, -35000)
=PMT( 4.43%/12, 3, -35000)
=PMT( 4.43%, 3, -35000)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8754260-65d4-4770-8ef4-f8be299a2d71%2F07c00381-615d-4733-9671-6472d973d703%2Fcozhed_processed.png&w=3840&q=75)
Transcribed Image Text:Sam would like to use the PMT function in Excel to calculate the
monthly payments on a car loan of $35,000 which is to be paid off
in full after 3 years. Interest is charged at a rate of 4.43% per year
and the payment to the loan is to be made at the end of each
month. Which function argument is correct?
(Reminder: =PMT(rate, nper, pv, [FV], [type])
=PMT( 4.43%, 36, -35000)
=PMT( 4.43%/12, 36, -35000)
=PMT( 4.43%/12, 3, -35000)
=PMT( 4.43%, 3, -35000)
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