Match List - I with List - II.
|
List - I |
List - II |
|
(A) Nper |
(I) Future value |
|
(B) PV |
(II) payment mode |
|
(C) Pmt |
(III) Present value |
|
(D) fv |
(IV) Number of periods |
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - (A)-(IV), (B)-(III), (C)-(II), (D)-(I).
|
List - I |
List - II |
|
(A) Nper |
(IV) Number of periods |
|
(B) PV |
(III) Present value |
|
(C) Pmt |
(II) payment mode |
|
(D) fv |
(I) Future value |
| Parameter | Explanation |
| Rate | Interest rate per period for the loan |
| Nper | Total number of payments for the loan. Its unit (e.g. year) should match with the unit of the interest rate. |
| Pv | Present value, i.e. the loan amount |
| Fv | Future value, which is taken as 0, is the balance at the end of the loan period |
| Type | Whether payment is made at the beginning (value=1) or at the end (value=0) of the period |
* Computation of repayment installments is an iterative process. The Excel’s built-in function, PMT can be used to compute monthly instalments of repayment of loan.