Given the following function, describe what argument each component represents. Pmt(.05/12, 5*12, -50000, 0, 0).
What will be an ideal response?
Interest Rate Per Period: 5% interest rate with twelve payments per year.
Number of Periods: Five years with twelve payments per year.
Present Value: A $50,000 loan. The negative sign is placed in front of the Present value so that the result of the formula will be a positive cash flow (number).
Future Value: The 0 represents that the loan will be paid down to a balance of $0.
Type: The type is either represented with a 1 or 0. In this case a 0, which means that the payments will be made at the end of the period – at the end of the month.
You might also like to view...
To test reachability of a host terminal in a network, you can use the ____________________ computer network tool.
Fill in the blank(s) with the appropriate word(s).
You can use the ________ to locate unmatched records and then delete the records from the table
Fill in the blank(s) with correct word
A table of contents is usually inserted on the last page of the document
Indicate whether the statement is true or false
Forensic Toolkit (FTK) is bit-stream imaging software produced by AccessData
Indicate whether the statement is true or false.