When Using the PMT Function to Calculate Monthly Loan Payments,the

question 8

Multiple Choice

When using the PMT function to calculate monthly loan payments,the interest rate and the number of payments should be based on the interest rate per month and the total ____ to pay off the loan.

• A) weeks
• B) months
• C) years
• D) any of the above

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Definitions:

Fixed Supply

A situation where the quantity of a good available is constant and does not change with price.

Demand Determined

A characteristic of markets where the quantity of goods or services sold is primarily influenced by consumer demand.

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to price changes.

Demand Determined

A market characteristic where the quantity of products or services provided is primarily set by the level of demand.