ISTM 210 Exam 2 with Excel questions With Complete Solutions!

RATE - ANSWERScalculates the interest rate earned for an investment given the number of payments made as part of the investment, the payment amount, and the current value of the investment. (nper, pmt, pv, [fv], [type], [guess]) =RATE(Number of Payments, Monthly Payment Amount, Loan Amount)*12 EFFECT - ANSWERScalculates the annual percentage rate for an interest rate given the number of times per year that interest is charged. (nominal_rate, npery) =effect(Interest Rate, Number of Payments per year) NPER - ANSWERScalculates the number of payments that will be made to pay off a loan given the interest rate, payment amount, and original loan amount. (rate, pmt, pv, [fv], [type]) =NPER(Interest Rate/12, Monthly Payment Amount, Loan Amount) PMT - ANSWERScalculates the payment amount for a loan given the interest rate, number of payments to be made to pay off the loan, and the original loan amount. (rate, nper, pv, [fv], [type]) =PMT(Interest Rate/12, Number of Payments, Loan Amount) PV - ANSWERScalculates the current value (accounting for compounding interest) of an investment given the interest rate, number of payments to be made, and the amount of the payment. (rate, nper, pmt, [fv], [type]) =PV(Interest Rate/12, Number of Months, Monthly Payment Amount) FV - ANSWERScalculates the future value of an investment given the interest rate, n