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?

A) =FV(.06,10000,0,10)
B) =PV(.06,10000,0,10)
C) =FV(.06,10,0,10000)
D) =PV(.06,10,0,10000)

C

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When comparing a straight note with an installment note, the straight note:

A: Will have equal annual principal reduction payments; B: Will have no principal payments during the term of the loan except on the last payment; C: Will have a total effective interest rate greater than if the loan were an installment loan; D: None of the above.

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Indicate whether the statement is true or false

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