Suppose that you deposit $10,000 in an account that pays 6% interest and you want to know how much will be in your account at the end of 10 years.To solve this problem in Microsoft Excel,you would use which of the following Excel formulas?
A)=FV(.06,10000,0,10)
B)=PV(.06,10000,0,10)
C)=FV(.06,10,0,10000)
D)=PV(.06,10,0,10000)

Question

Quizplus · Accepted Answer

The FV (Future Value) function is used to calculate the future value of an investment. The correct syntax is =FV(rate, nper, pmt, [pv], [type]). Here, the rate is 0.06, nper (number of periods) is 10, pmt (payment per period) is 0, and pv (present value) is -10000 (negative because it's an outflow).

Suppose That You Deposit $10,000 in an Account That Pays