Suppose you used the FV Excel function to determine whether your rate of saving will be sufficient to purchase the $1 million item you want ten years from now. Your savings rate is
A)Just right
B)Too low
C)Too high if the FV calculation yields a number less than $1 million and too low otherwise.
D)Too high if the FV calculation yields a number more than $1 million and too low otherwise.

Question

Quizplus · Accepted Answer

The FV (Future Value) function calculates how much a current sum of money will grow to over a given period at a specified rate. If the FV calculation yields a number more than $1 million, it means your savings rate is too high as you will have more than needed. Conversely, if it yields less than $1 million, your savings rate is too low because you won't reach your target.

Suppose You Used the FV Excel Function to Determine Whether