What function returns the total present value of an investment with a fixed rate, specified number of payment periods and a series of identical future payments?
A)PV
B)PMT
C)IPMT
D)FV

Question

Quizplus · Accepted Answer

The PV (present value) function returns the total present value of an investment with a fixed rate, specified number of payment periods, and a series of identical future payments. It is the correct choice for this scenario because it calculates the current worth of future cash flows. The PMT function calculates the equal periodic payments required to pay off a loan or reach a savings goal. The IPMT function calculates the interest portion of a loan payment for a specific period. The FV function calculates the future value of an investment or savings account based on a fixed interest rate and regular payments.

What Function Returns the Total Present Value of an Investment