CES Financial Functions & Modeling

Question 1

What does the PMT function in Excel calculate?

Accepted Answer

The periodic payment for a loan or annuity

Answer

The future value of an investment

Answer

The present value of a series of cash flows

Answer

The net present value of an investment

Question 2

Which Excel function calculates the Net Present Value of an investment?

Accepted Answer

NPV

Answer

IRR

Answer

XNPV

Answer

PV

Question 3

In the PMT function =PMT(rate, nper, pv), what does the argument 'nper' represent?

Accepted Answer

The total number of payment periods

Answer

The nominal interest rate per period

Answer

The net present value of the loan

Answer

The net periodic earnings rate

Question 4

Which Excel function returns the Internal Rate of Return for a series of evenly spaced cash flows?

Accepted Answer

IRR

Answer

NPV

Answer

RATE

Answer

XIRR

Question 5

What does the FV function in Excel calculate?

Accepted Answer

The future value of an investment based on periodic payments

Answer

The fixed value of a financial instrument

Answer

The frequency value of periodic investments

Answer

The forecasted value using regression analysis

Question 6

Which Excel function calculates the present value of a loan or investment?

Accepted Answer

PV

Answer

PMT

Answer

FV

Answer

NPER

Question 7

What does the NPER function calculate in Excel?

Accepted Answer

The number of periods required for an investment or loan

Answer

The net present earnings rate

Answer

The nominal periodic earnings ratio

Answer

The net payment for each recording period