Identify the Correct Formula to Calculate the Cumulative Principal Paid

question 14

Multiple Choice

Identify the correct formula to calculate the cumulative principal paid on a mortgage loan for the second year of the loan (periods 1-12,where rate =5%,nper =120,present value = $147,000.

• A)=CUMIPMT(.05/12, 120*12, 147000,12,1,0)
• B)=CUMIPMT(.05/12, 120*12,-147000,1,12,0)
• C)=ABS(CUMIPMT(.05/12, 120,-147000,12,1,0))
• D)=(ABS(CUMIPMT(.05/12, 120, 147000,1,12,0))

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