MoneyKraft

1. If the PMT function is to be used to calculate the monthly investment needed to reach a goal value, then which of the following is true?

The time period for calculation should be number of months multiplied by 12

The amount used should be the annual payment amount

The rate used for calculation should be the expected annual rate divided by 12

2. What does Type = 1 in the PMT function refer to?

Payments are due at the end of the period

Payments are due in the middle of the period

Payments are due at the beginning of the period

3. Which of the following has to be true while using PMT function in excel?

Payments or amount invested can be variable across the time periods

The time horizon can be split into unequal periods

Interest rate has to be constant across the time horizon

Time value of money series - systematic investments with pmt function of excel

time value of money series

Learn how Excel can be used to estimate the amount of systematic savings needed to achieve a future financial goal.

AUTHOR(s):Taruna Changulani

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