PV function returns the present value of an investment. The syntax of the function is PV (rate, nper, pmt, fv, type). What does NPER stands for?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Number of payment periods in an annuity.
NPER stands for Number of payment periods in an annuity.
Nper is the total number of payment periods in an annuity. For example, if a loan is a four -year car loan and makes monthly payments, then loan has 4*12 (or 48) periods. The value for nper will be 48.