Which of the following arguments in a financial function represents the total number of payments?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- NPer.
Nper = Total no of payments for the loan. Its unit (e.g. year) should match with the unit of the interest rate.
NPER stands for "Number of Periods" in finance and investment calculations. It is a function commonly used in spreadsheet software like Microsoft Excel and Google Sheets. NPER is used to calculate the number of payment periods required to repay a loan or investment based on factors such as interest rate, periodic payment amount, and the present value of the loan or investment.
| 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 |