The correct answer is Option (3) - PV
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 |
|