Question
Which formula will you enter into a spreadsheet cell to determine how long it will take $40 to grow to $240 at an interest rate of 6.53% compounded annually?
Multiple choice question.
=N(0.0653,0,−40,240)
=NPER(0,0.0653,−40,240)
=N(40,0.0653,−240)
=NPER(0.0653,0,−40,240)
Multiple choice question.
=N(0.0653,0,−40,240)
=NPER(0,0.0653,−40,240)
=N(40,0.0653,−240)
=NPER(0.0653,0,−40,240)
Answers
GPT-4o mini
To determine how long it will take for an investment to grow from $40 to $240 at an interest rate of 6.53% compounded annually, you would use the `NPER` function. The syntax for the `NPER` function is:
```plaintext
NPER(rate, pmt, pv, fv)
```
Where:
- `rate` is the interest rate for each period.
- `pmt` is the payment made each period (0 in this case, since you're not making additional payments).
- `pv` is the present value (the initial amount, which will be negative because it is an outflow).
- `fv` is the future value (the amount you want to achieve).
In this case, your inputs would be:
- `rate`: 0.0653 (6.53%)
- `pmt`: 0 (no additional payments made)
- `pv`: -40 (the initial investment)
- `fv`: 240 (the desired future value)
Thus, the correct formula to enter in the spreadsheet cell is:
`=NPER(0.0653, 0, -40, 240)`
So the correct answer from your options is:
**=NPER(0.0653,0,−40,240)**
```plaintext
NPER(rate, pmt, pv, fv)
```
Where:
- `rate` is the interest rate for each period.
- `pmt` is the payment made each period (0 in this case, since you're not making additional payments).
- `pv` is the present value (the initial amount, which will be negative because it is an outflow).
- `fv` is the future value (the amount you want to achieve).
In this case, your inputs would be:
- `rate`: 0.0653 (6.53%)
- `pmt`: 0 (no additional payments made)
- `pv`: -40 (the initial investment)
- `fv`: 240 (the desired future value)
Thus, the correct formula to enter in the spreadsheet cell is:
`=NPER(0.0653, 0, -40, 240)`
So the correct answer from your options is:
**=NPER(0.0653,0,−40,240)**