Brain Dead on PV Calculation

Posted by Fred Henry on February 23, 2001 6:25 AM

How to use excel function to determine the PV of a single payment of $10,000 to be received 5 years from now discounted by 6%? For years I have been simply building the PV formula in a cell (=1/(1+.06)^5), but there has to be a simplier way to do this using an Excel function. Help!

Posted by Dave Hawley on February 23, 2001 6:32 AM

Hi Fred

Push Shift+F3, Select "Financial" and then select "PV"

It's that easy :O)

Dave
OzGrid Business Applications

Posted by Fred Henry on February 23, 2001 6:41 AM

Dave, doesn't PV assume a "series" of payments for a period of time? I'm trying to PV a single payment to be received at a point in the future. Thanks.

Posted by ScottR on February 23, 2001 3:02 PM

Try this:
=PV(6%,5,,10000)
In your case, you have no recurring payments so that argument is left blank.

Posted by Fred Henry on February 24, 2001 8:23 AM

Thanks Scott. Perfect.