For the PMT function, you have to divide the annual interest rate by ____ if you're using monthly payments.
A)6
B)9
C)12
D)18

Name: For the PMT function, you have to divide the annual interest rate by ____ if you're using monthly payments. A)6 B)9 C)12 D)18
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Question

Quizplus · Accepted Answer

The interest rate needs to be divided by the number of compounding periods per year, which is 12 for monthly payments. Therefore, the correct answer is C, 12.

For the PMT Function, You Have to Divide the Annual