n NISM Certifications
X NISM Series X
Medium

The statement that the FV function in MS Excel is used to calculate the monthly or yearly investment required is false; instead, the PMT function should be used for such calculations.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

The FV function calculates future value, while the PMT function is used to determine periodic payments needed to reach a financial goal.

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