Asked by Kyndal Hampton on Jul 07, 2024
Verified
Curtis is planning to invest $50 per month for the next 60 months and expects to earn 5% in interest.Which of the following functions can he use to determine how much the investment will be worth at the end of 60 months?
A) PMT
B) NPER
C) FV
D) PV
FV Function
A type of financial function that calculates the future value of an investment based on a constant interest rate.
Interest
A fee paid for the use of borrowed money, typically expressed as an annual percentage of the loan amount.
- Familiarize yourself with the operations and their implementation for conducting financial calculations in Excel.
Verified Answer
PO
pearse odonohueJul 07, 2024
Final Answer :
C
Explanation :
PMT is used to calculate periodic payments, NPER is used to calculate the number of periods needed to reach a certain investment goal, and PV is used to calculate the present value of an investment.
Therefore, Curtis should use FV (future value) function in order to determine the amount of investment that will be worth at the end of 60 months.
Therefore, Curtis should use FV (future value) function in order to determine the amount of investment that will be worth at the end of 60 months.
Learning Objectives
- Familiarize yourself with the operations and their implementation for conducting financial calculations in Excel.