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Accountancy · 2025 · 3 marks
CBSE 2025 · Region 6 · Set 3 · Q32
Which built-in function can be used to compute monthly instalments of repayment of loan ? State its parameters also.
Marking-scheme solution
PMT is the built in function which can be used to compute monthly instalments of repayment
of loan.
Following are the parameters:
Rate: Interest rate per period for the loan.
Nper: Total number of payments for the loan. Its unit (year) should match with the unit of the
interest rate.
PV: Present Value : loan amount
FV: Future Value, which is taken as $\displaystyle 0$ is the balance at the end of the loan period.
Type: Whether payment is made at the beginning (value=$\displaystyle 1$) or at the end (value=$\displaystyle 0$) of the period.
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CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.