Question

Which of the following arguments in a financial function represents the total number of payments?

• A. FV
• B. PV
• C. Nper
• D. Rate

Hint:

Nper means number of periods, and one period is one payment.

Answer 1

The Correct Option is C

Step 1: Understand the concept.
Financial functions in a spreadsheet, such as PMT, PV, FV and NPER, use arguments like Rate, Nper, Pmt, PV and FV. Each argument stands for one quantity of a loan or an investment.

Step 2: Check option 1 (FV).
FV means future value. It is the value of the investment at the end of the period. It is not a count. So option 1 is WRONG.

Step 3: Check option 2 (PV).
PV means present value. It is the amount today, such as the loan amount. So option 2 is WRONG.

Step 4: Check option 3 (Nper).
Nper means the number of periods. It is the total number of payments in the loan or the annuity. So option 3 is CORRECT.

Step 5: Check option 4 (Rate).
Rate is the interest rate for each period. It is a percentage, not a count. So option 4 is WRONG.

Final Answer:
Nper is the argument for the total number of payments, option 3.
\[ \boxed{\text{Nper}} \]