Question: 7. You are using the PMT function to determine a monthly payment amount. Why is the interest rate divided by 12? Why is the number

7. You are using the PMT function to determine a monthly payment amount. Why is the interest rate divided by 12? Why is the number of years multiplied by 12? The interest rate is divided by 12 because there are 12 months, which each have a monthly payment, in a year. The interest rate is a yearly interest rate, which does not include each monthly interest rate. The number of years is multiplied by 12 because there are 12 months, and 12 payments a year, for how every many years

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