The Pv Argument in the PMT Function Represents the ________

question 55

Multiple Choice

The pv argument in the PMT function represents the ________ of the loan.

• A)payment amount
• B)loan amount
• C)percentage rate
• D)percentage value

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Definitions:

Compound Interest

Interest calculated on both the original amount of money either loaned or deposited, as well as on the interest that has already been added to it from earlier periods.

Interest on Interest

The interest earned on the reinvestment of previous interest payments, often seen in compound interest scenarios.

Simple Interest

Interest charged exclusively on the initial borrowed amount, or on whatever portion of the principal is still outstanding.