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Which of the following spreadsheet functions will calculate the $614.46 present value of an ordinary annuity of $100 per year for 10 years at 10 percent per year?

a. = PV(100,0.1,0,10,0)
b. = PV(0.10,10,-100,0,0)
c. = FV(0.1,10,100,0,0)
d. = PV(10,-100,0.1,0,0)

Respuesta :

Parrain

The function that will calculate the present value of an annuity of $100 per year for 10 years at 10% is b. = PV(0.10,10,-100,0,0).

Why is this the right function?

When using the PV function on a spreadsheet, the first figure after the bracket should be the interest rate in decimals which is 0.10.

The next figure will be the number of years which is 10 and the figure after that will be the ordinary annuity amount. It should be listed in negative which makes it -100. The FV and the Type should be 0.

In conclusion, option B is correct.

Find out more on spreadsheet functions at https://brainly.com/question/1395170.

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