The nominal interest rate for a 10-year, $25,000 loan is 4.75%, compounded quarterly. If we make payments on the loan every month, which of the following shows how we would calculate the monthly payment in Excel?

=PMT(EFFECT(NOMINAL(0.0475,4),12)/12,120,25000) =PMT(NOMINAL(EFFECT(0.0475,4),12)/12,120,25000) =PMT(NOMINAL(EFFECT(0.0475,12),4),120,25000) =PMT(0.0475/12,120,25000) =PMT(0.0475/4,120,25000)