In the figure above,nper stands for the ____.
A)total number of payment periods
B)total number of payments that have already been made
C)number of payments per year
D)number of interest payments per year

Question

Quizplus · Accepted Answer

nper stands for the total number of payment periods, which includes both principal and interest payments to be made over the life of the loan or investment. It is usually expressed in terms of years but can be converted to the number of months or other intervals depending on the payment frequency. Option A is therefore the best choice. Option B refers to the payments that have already been made, which is not the same as the total number of payment periods. Options C and D both refer to the payment frequency or number of payments made in a year, which is different from the total number of payment periods.

In the Figure Above,nper Stands for the ____