Suppose that you deposit? $10,000 in an account that pays? 6% interest and you want to know how much will be in your account at the end of 10 years. To solve this problem in Microsoft? Excel, you would use which of the following Excel? formulas?

=FV?(.06,10,0,10000)

B.

?=PV?(.06,10,0,10000)

C.

?=PV?(.06,10000,0,10)

D.

?=FV?(.06,10000,0,10)

B.    =PV(.06,10,0,10000)

Explanation:

In MS Excel the formula of Present value re is as  "=PV( rate, nper, pmt, [fv] )".

PV = Present value

rate = Interest rate= 6% = 0.06

nper = number of periods  = 10

pmt = payment made each period = 0 in this scenario

fv = future value = 10,000

So, according to the formula the correct sequence is =PV(.06,10,0,10000)

which is correctly mentioned in option B.

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