PMT QUESTIONS AND ANSWERS
PMT - Answers -To calculate the size of the monthly or quarterly payments required to
pay off a loan or meet an investment goal; used to determine how much you have to
spend each month to repay a loan within a set period of time
NPER - Answers -To calculate the number of monthly or quarterly payments required
to pay off a loan or meet an investment goal
PPMT - Answers -To calculate the amount of a loan payment used to pay off the
principal of the loan
IPMT - Answers -To calculate the amount of interest due in a specified payment period
from a loan
Using functions with Loans - Answers -positive cash flow because it represents a
payment to the company
Using functions with Investments - Answers -Initial investment is a negative cash value
an the periodic returns from the investment are positive cash values
Cash flow - Answers -concerned with the direction of the money as it moves into and
out of a company
IF Function - Answers -logical function that evaluates a condition (logical test), and then
returns one value if the condition is true and another value if the condition is false
AND Function - Answers -a logical function that returns a true value if all the logical
conditions are true and a false if any or all of the logical conditions are false
Lookup Table - Answers -a table that organizes data you want to retrieve into different
categories called compare values are located in the table's first column or row
To determine whether a lookup value falls within a range of values in a lookup table -
Answers -searches the first column of the table until it locates the largest value that is
still less than the lookup value. Then excel moves across the table to retrieve the data
from the appropriate row
COUNTIF - Answers -counts the number of cells within a range that meets a criteria
SUMIF - Answers -range: the range of cells that you want to filter before calculating a
sum
criteria: the condition used in the range to filter the data
Sum Range: the range of cells that you want to add
PMT - Answers -To calculate the size of the monthly or quarterly payments required to
pay off a loan or meet an investment goal; used to determine how much you have to
spend each month to repay a loan within a set period of time
NPER - Answers -To calculate the number of monthly or quarterly payments required
to pay off a loan or meet an investment goal
PPMT - Answers -To calculate the amount of a loan payment used to pay off the
principal of the loan
IPMT - Answers -To calculate the amount of interest due in a specified payment period
from a loan
Using functions with Loans - Answers -positive cash flow because it represents a
payment to the company
Using functions with Investments - Answers -Initial investment is a negative cash value
an the periodic returns from the investment are positive cash values
Cash flow - Answers -concerned with the direction of the money as it moves into and
out of a company
IF Function - Answers -logical function that evaluates a condition (logical test), and then
returns one value if the condition is true and another value if the condition is false
AND Function - Answers -a logical function that returns a true value if all the logical
conditions are true and a false if any or all of the logical conditions are false
Lookup Table - Answers -a table that organizes data you want to retrieve into different
categories called compare values are located in the table's first column or row
To determine whether a lookup value falls within a range of values in a lookup table -
Answers -searches the first column of the table until it locates the largest value that is
still less than the lookup value. Then excel moves across the table to retrieve the data
from the appropriate row
COUNTIF - Answers -counts the number of cells within a range that meets a criteria
SUMIF - Answers -range: the range of cells that you want to filter before calculating a
sum
criteria: the condition used in the range to filter the data
Sum Range: the range of cells that you want to add
