Which Function Should You Use to Calculate the Monthly Payment

question 1

Multiple Choice

Which function should you use to calculate the monthly payment on a loan?

• A) PMT
• B) LOAN
• C) PAY
• D) RATE

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements, meaning part of it changes with the level of activity while another part remains constant.

Machine Hour

A unit of measure representing the operation of a machine for one hour, used in accounting to allocate costs to products.

Factory Utility Cost

The expenses associated with the utilities consumed by a factory or manufacturing plant, such as electricity, gas, and water.

Mixed Cost

A cost that contains both variable and fixed cost elements, making it partly dependent on the level of output or activity.