Final answer:
The syntax =FV(rate,nper,pmt,[pv],[type]) for the FV function in financial calculations is correct. This function calculates the future value of an investment based on constant payments and a constant interest rate, with optional parameters for present value and payment type.
Step-by-step explanation:
The statement that the syntax of the FV function is =FV(rate,nper,pmt,[pv],[type]) is True. The FV (Future Value) function in Excel is used in financial calculations to determine the future value of an investment based on periodic, constant payments and a constant interest rate. The parameters are used as follows:
- rate is the interest rate per period.
- nper is the total number of payment periods.
- pmt is the payment made each period; it cannot change over the life of the annuity.
- [pv] is the present value, or the lump-sum amount that a series of future payments is worth right now (optional).
- [type] is the number 0 or 1 and indicates when payments are due (0 at the end of the period, 1 at the beginning of the period) (optional).
The formula for calculating the present value (PV) from the future value (FV) is PV = FV / (1+i)^n, where i is the interest rate per period and n is the number of periods.