Excel Financial Function Quiz

Question 1

Which function would you use to calculate the monthly payment for a fixed-rate loan (like a mortgage)?

Question 2

In the formula =PV(Rate, Nper, Pmt, ...), what does 'Nper' stand for?

Question 3

The FV function is primarily used to:

Question 4

What is the primary purpose of the Internal Rate of Return (IRR) function?

Question 5

If you are using PMT for a monthly mortgage, what must you do to the annual interest 'Rate' argument?

Question 6

Which function calculates the 'Net Present Value' of an investment using a discount rate and a series of future cash flows?

Question 7

To calculate straight-line depreciation for an asset, use:

Question 8

The IPMT function specifically returns:

Question 9

What is the 'Salvage' argument in depreciation functions?

Question 10

Which function would you use to calculate the yearly interest rate of a loan if you only know the loan amount, payment, and duration?

Question 11

What does MIRR stand for?

Question 12

In most Excel financial functions, why is the 'Payment' (Pmt) often entered as a negative number?

Question 13

To find out how many payments (months/years) are needed to reach a specific financial goal, use:

Question 14

The NOMINAL function is used to:

Question 15

Which function returns the accrued interest for a security that pays periodic interest?