The Excel formula to compute the annual payment for a car loan of $30,000 at 5% interest rate over five years is:
A) =PMT(5,0.05,30000)
B) =PMT(30000, 0.05,5)
C) =PMT(0.05,60,30000)
D) =PMT(0.05,5,30000)

Question

Quizplus · Accepted Answer

The PMT function in Excel requires the interest rate per period, the number of periods, and the loan amount. For an annual payment, the interest rate is 5% (0.05), the number of periods is 5 years, and the loan amount is $30,000.

The Excel Formula to Compute the Annual Payment for a Car