The PMT function finds the value of the payment per period, assuming that there are constant payments and a constant interest rate for the duration of the loan.

Question

Quizplus · Accepted Answer

The statement is true as the PMT function is commonly used in financial calculations, such as determining mortgage payments, car loans, and other types of loans where the payments are fixed for the duration of the loan. The PMT function takes into account the principal amount, interest rate and the number of periods to calculate the payment per period.

The PMT Function Finds the Value of the Payment Per