When using the Visual Basic .NET Financial.Pmt function, Financial.Pmt(Rate, NPer, PV[,FV, Due]), which of the following is correct for a 7%, $10,000, 5 year loan with annual payments?
A) Financial.Pmt(.07, 5, 10000, 0, DueDate.EndOfPeriod)
B) Financial.Pmt(.07, 5, 10000, 0, DueDate.BegOfPeriod)
C) Financial.Pmt(.07/12, 5*12, 10000, 0, DueDate.EndOfPeriod)
D) Financial.Pmt(7, 5*12, 10000, 0, DueDate.EndOfPeriod)

Question

Quizplus · Accepted Answer

Option A is correct because it accurately represents the parameters for a 7% annual interest rate, a 5-year term, and a $10,000 loan amount with payments made at the end of each period, which is typical for most loan agreements. The other options either incorrectly adjust the interest rate or the payment period, or specify payments at the beginning of the period, which is less common and not specified in the question.

When Using the Visual Basic