Which of the following options in a fina

CUET Preparation Today

Start Free Mocks

Home Questions TDK7Q5NJKD

Target Exam

CUET

Subject

Accountancy

Chapter

Use of Spreadsheet in Business Applications

Question:

Which of the following options in a financial function indicates the interest for a period?

Options:

Nper

Rate

Correct Answer:

Rate

Explanation:

Correct answer is Option 4: Rate

Rate options in a financial function indicates the interest for a period.

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