Question

2. Which statements about Excers FV function are correct? 0 The FV function has five arguments, and their abbreviations are rate ner pm, p and type ○ If the number for the pmt argument is entered as a postive value and the pw value is zero, the F 0 If the interest rate is 10%, the rate argument can be enered as 1 or 10% 0 Alofthe options are correct. value is negative. 3. Which fields are required to calculate net present value (NPV) in Excel? O Rate of return and cash flows for each year O Average cash fow and future value O Future value and rate of return O Cash fows for each year and average cash flow ces 4.Which Excel function is used to calculate the amount of each annuity payment? O PMT PV

Answer 1

Q- 2

All the answers are correct. Hence the correct answer is the last option.

Q - 3

The first option is correct. In order to calculate NPV, you need rate of return and all the cash flows.

Q - 4

The third option is correct. We use PMT function to calculate the annuity.