If You Don't Know the Interest Rate for a Loan

question 18

Multiple Choice

If you don't know the interest rate for a loan but you know the present value,payment,and number of payment periods,you can use the ________ function to determine the interest rate.

• A)GUESS
• B)PMT
• C)RATE
• D)NPER

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Definitions:

Supply

The total amount of a certain good or service that is available for purchase at a particular price level and time.

Perfectly Inelastic

Refers to a market situation where the quantity demanded or supplied does not change regardless of the price level changes.

Perfectly Elastic

Describes a market situation where quantity demanded or supplied changes by an infinite amount in response to any change in prices.

Demand

The willingness and ability of consumers to purchase goods and services at various prices.