When entering variables in an Excel functions (or in a financial calculator) the sign convention can be critical to achieving a correct answer. The sign convention says that outflows are negative values'; inflows are positive values. For which variable is this a consideration?

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Business

Makena Bray

4 July, 10:10

When entering variables in an Excel functions (or in a financial calculator) the sign convention can be critical to achieving a correct answer. The sign convention says that outflows are negative values'; inflows are positive values. For which variable is this a consideration?

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Answers (1)

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Nayeli Clay · Answer 1

The applicable variables are:

Payment

Present value

Future value

Explanation:

The payment function is used to determine periodic repayment on loans or amount to invest at intervals in order to reach a targeted amount in future. Payment formula is given as:=PMT (rate, nper, pv, [fv], [type])

Present value is a financial function in excel used in determining the value of future cash flows in today's terms. That is how much amounts receivable in the future is today. The formulas is given as:=PV (rate, nper, pmt, (fv), type))

The future value is used in determining how much an certain amount or investment is worth at future time