n NISM Certifications
X NISM Series X
Medium

The PMT function in MS Excel calculates the periodic investment amount required to reach a financial goal when the investment period and rate of return are known.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    PV

  2. B

    FV

  3. PMT

    Correct answer

  4. D

    NPER

Why this is the answer

The PMT function computes the regular payment amount needed to achieve a specified future value, given the interest rate and number of periods.

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