Which of the following would not produce the correct monthly payment on a loan of $13,000 which will be paid off in 5 years with an annual interest rate of 6%?
A)=PMT(6%,60,-13000)
B)=PMT(.5%,60,-13000)
C)=PMT(.5%,5*12,-13000)
D)=PMT(6%/12,60,-13000)

Question

Quizplus · Accepted Answer

Option A incorrectly uses an annual interest rate (6%) without converting it to a monthly rate for the PMT function, which requires the interest rate to be in the same period as the payment period (monthly in this case).

Which of the Following Would Not Produce the Correct Monthly