Question

Which of the following are correct spreadsheet functions?

Multiple select question.

Future value = FV(rate,nper,pmt,pv)


Discount rate = RATE(nper,pmt,pv,fv)


Present value = PV(rate,nper,pmt,fv)


Interest rate = DISCOUNT(nper,pmt,pv,fv)

Answer 1

Let's evaluate each of the functions listed to determine which are correct spreadsheet functions:

1. **Future value = FV(rate, nper, pmt, pv)**
**Correct**: This is the correct syntax for the FV function in Excel, which calculates the future value of an investment based on a constant interest rate.

2. **Discount rate = RATE(nper, pmt, pv, fv)**
**Correct**: This is the correct syntax for the RATE function in Excel, which calculates the interest rate per period of an annuity.

3. **Present value = PV(rate, nper, pmt, fv)**
**Incorrect**: This function is almost correct, but the order of the arguments is wrong. The correct syntax for the PV function in Excel is **PV(rate, nper, pmt, [fv], [type])**, where the `fv` (Future Value) comes last.

4. **Interest rate = DISCOUNT(nper, pmt, pv, fv)**
**Incorrect**: DISCOUNT is not a standard function in Excel for calculating an interest rate. There are other functions like RATE or IRR that can be used to find rates, but DISCOUNT is not one of them.

Based on this evaluation, the correct answers are:

- Future value = FV(rate, nper, pmt, pv)
- Discount rate = RATE(nper, pmt, pv, fv)