Question

In a spreadsheet, the CUMIPMT function is used in cell G12 to calculate the cumulative interest paid on the first payment of a loan. The loan details are stored in cells E6:E9. Which of the following options correctly describes the usage of cell references in this scenario?

Answer 1

The CUMIPMT function calculates cumulative interest paid on the first payment of a loan in a spreadsheet.

Step-by-step explanation:

In the given scenario, the CUMIPMT function is used in cell G12 to calculate the cumulative interest paid on the first payment of a loan. The loan details are stored in cells E6:E9.

The CUMIPMT function takes the arguments for the interest rate, the number of periods, the present value, the start period, and the end period. In this case, the interest rate, number of periods, and present value would reference the appropriate cells in the E6:E9 range. The start period and end period would be 1, as it refers to the first payment.