D076 Module 5 Exam Questions With
Revised Answers
Rate - answerInterest rate per period
nper - answernumber of payments in a annuity
pmt - answerpayment made each period
pv - answerPresent Value, a lump sum amount that a series of future payments is made
fv - answerfuture value, or the cash b...
pv - answer✔✔Present Value, a lump sum amount that a series of future payments is made
fv - answer✔✔future value, or the cash balance you want to attain after the past payment is made
type - answer✔✔type of annuity-0 indicates an ordinary annuity; 1 indicates an annuity due.
default is 0
value1,[value2], - answer✔✔value1 is the given first payment one period for today; value2 is the
second payment one period after value1. each payment must be equally spaced in time to occur
at the end of each period
Values - answer✔✔An array of reference to cells that contain numbers for which you want to
calculate the internal rate of return
=RATE(NPER, PMT, PV, [FV], [type], [guess]) - answer✔✔Returns the interest rate per period
=NPER(RATE, PMT, PV, [FV], [type]) - answer✔✔Returns the number of payment periods in
an annuity
=PMT(rate,nper,pv,[fv],[type]) - answer✔✔Returns the payment made each period (this has to
be an annuity)
=PV(RATE, NPER, PMT, [FV], [type]) - answer✔✔Returns the present Value, or lump sum
amount that a series of future payments is worth right now
=FV(rate,nper,pmt,[pv],[type]) - answer✔✔Future Value Function, or the cash balance you want
toattain after the last payment is made
=NPV(rate,value1,[value2],...) - answer✔✔Returns the net present value of a series of future
payments with a given rate
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