Which Function Will Calculate the Current Value on an Investment

question 57

Multiple Choice

Which function will calculate the current value on an investment that will earn 5% interest on yearly payments of $100 over 10 years?

• A)FV
• B)PV
• C)NPV
• D)PMT

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Definitions:

Normality

The condition of conforming to a normal distribution, characterized by data that plots as a bell-shaped curve.

Durbin-Watson Statistic

A measure used in statistics to detect the presence of autocorrelation at lag 1 in the residuals from a regression analysis.

Residual

The difference between an observed value and the estimated value in a regression analysis.

Multicollinearity

A situation in regression analysis in which predictor variables are highly correlated, making it difficult to isolate the individual effects of the predictors.