Question

For calculation of present value of annuity regular,in excel,the value of type should be?
A)1
B)0
C)10
D)0.1

Answer 1

The PV, FV, NPER, RATE, and PMT functions in Excel can be used for both an ordinary annuity (payments made at the end of the period, type=0) and annuity due (payments made at the beginning of the period, type=1).

Answer 2

For calculation of present value of annuity regular,in excel,the value of type should be 1

Option A

Explanation:

• Calculation of annuity is needed to be done with a financial expert or an enterprise in form of an agreement where u pay them an amount every month for certain amount of money to be received a later date.
• The value at present of the annuity will add up to the total amount of payments that would be due at the the later period. It would depend on the rate of return which would be integrated into the total calculation.
• The present worth of the annuity is dependent on value of money and the discount rate. If the discount rate is high then the present worth of annuity would be lesser. There are other methods of to increase the monetary value through the interest rates

 

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