When Using Excel to Find the Future Value of $2,000

question 78

Multiple Choice

When using Excel to find the future value of $2,000 invested in an account that would earn interest of 7.5% for 18 years, the correct entry would be

• A)= FV(7.5,18,0,−1000)
• B)= PV(.075,18,0,−1000)
• C)= FV(7.5,18,0,1000)
• D)= FV(.075,18,0,−1000)

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Definitions:

Shortage

A market condition where the demand for a product exceeds its supply, often leading to higher prices.

Loanable Funds

The total funds available within an economy for borrowing, including savings and other investments.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Present Value

The value today of a sum of money or series of payments expected in the future, adjusted for a certain rate of return.