What is the correct syntax for the PMT function in Excel?

The correct syntax for the PMT function in Excel is indeed represented by the phrase "PMT(interest rate, number of payments, loan principal)." It is essential to understand that this function is designed to calculate the periodic payment amount for a loan based on constant payments and a constant interest rate.

In this context, the first argument, "interest rate," refers to the interest rate for the period. The second argument, "number of payments," specifies the total number of payment periods in the loan term. The third argument, "loan principal," indicates the total amount of the loan (or the present value of the loan). This precise definition aligns with the technical specifications of the PMT function as outlined in Excel's documentation.

The other options either present incorrect argument labels or do not fit the conventional understanding of the function's syntax. Therefore, having clarity on this syntax is crucial for effectively using the PMT function in financial calculations within Excel.