In what cell is the Rate for PMT function where = PMT (C8, C9, C10, C11, C12)?
Answer & explanation
Correct answer: option 1
Correct answer: Option (1) → C8
Concept: The PMT (loan instalment) financial function, from Use of Spreadsheet in Business Applications.
The syntax is PMT(Rate, Nper, Pv, [Fv], [Type]), where the FIRST argument is the interest rate per period. In =PMT(C8, C9, C10, C11, C12) the first argument is C8, so the Rate is contained in cell C8. Hence Option (1).