How do I use the PV function in Excel?
The PV function in Excel is used to calculate the present value of an investment. It is often used in finance and accounting to determine the value of future payments or cash flows. The formula for the PV function is:
=PV(rate,nper,pmt,[fv],[type])
Where:
- Rate: The interest rate per period.
- Nper: The total number of payment periods in the investment.
- Pmt: The payment made each period. This must remain constant throughout the investment.
- Fv: The future value of the investment. This is an optional parameter and can be left out if the future value is 0.
- Type: Specifies when payments are due. 1 means payments are due at the beginning of the period, 0 or omitted means payments are due at the end of the period.
Here is an example of how to use the PV function:
- Select a cell where you want the result of the calculation to appear.
- Type =PV(0.05, 10, 1000)
- Press enter.
In this example, the present value of an investment with a 5% interest rate, 10 payment periods, and a payment of $1000 per period is $7,722.70.
- What Are Some Of The Most Unusual Airplanes In The World
- Can I Change My Flight Itinerary For My American Airlines Flight Due To A Natural Disaster
- How Do I Visit Cornwall Park In Auckland
- Why Does Pakistan Deny The Second Surgical Strike In Pok
- Are People From Pok Demanding Freedom From Pakistan
- Who Were The Most Successful Basketball Teams Of The 1950s
- What Is The Role Of Career Centers In University Life And Education In The United States
- How Does Windows 11s New Snap Layouts Feature Compare To Windows 10s Snap Assist
- What Are The Benefits Of Learning A Second Language
- How Does The City Of Lisbon Portugal Offer A Rich Architectural And Cultural Experience For Visitors