ISTM 210 Exam 2 With 100% Correct And Verified Answers
Question 1: RATE calculates the interest rate earned for an
investment given the number of payments made as part of the investment, the payment amount, and the current value of the investment.
(nper, pmt, pv, [fv], [type], [guess])
CORRECT ANSWER : =RATE(Number of Payments,
Monthly Payment Amount, Loan Amount)*12
Question 2: EFFECT calculates the annual percentage rate for
an interest rate given the number of times per year that interest is charged.
(nominal_rate, npery)
CORRECT ANSWER : =effect(Interest Rate, Number of
Payments per year)
Question 3: NPER calculates the number of payments that
will be made to pay off a loan given the interest rate, payment amount, and original loan amount.
(rate, pmt, pv, [fv], [type])
CORRECT ANSWER : =NPER(Interest Rate/12, Monthly
Payment Amount, Loan Amount)
Question 4: PMT calculates the payment amount for a loan
given the interest rate, number of payments to be made to pay off the loan, and the original loan amount.
(rate, nper, pv, [fv], [type])
CORRECT ANSWER : =PMT(Interest Rate/12, Number of
Payments, Loan Amount)
Question 5: PV calculates the current value (accounting for
compounding interest) of an investment given the interest rate, number of payments to be made, and the amount of the payment.
(rate, nper, pmt, [fv], [type])
CORRECT ANSWER : =PV(Interest Rate/12, Number of
Months, Monthly Payment Amount)
Question 6: FV calculates the future value of an investment
given the interest rate, number of payments to be made, and the amount of the payment.
(rate, nper, pmt, [pv], [type])
CORRECT ANSWER : =FV(Interest Rate, Savings per
Month, Number of Months)
Question 7: COUNT
CORRECT ANSWER : =COUNT(range)
Question 8: COUNTIF
CORRECT ANSWER : =COUNTIF(range, criteria)
Question 9: SUMIF
CORRECT ANSWER : =SUMIF(range, criteria,
[sum_range])
Question 10: AVERAGEIF
CORRECT ANSWER : =AVERAGEIF(range, criteria,
[average_range])
