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What is the present value in excel?

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Anonymous

10y ago
Updated: 8/21/2019

Present value is a financial term and is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,209.21 if the future amount is discounted at 10% compounded annually. Excel provides a function called PV for calculating the Present Value. For the example given, it would be as follows:

=PV(10%,5,0,-10000)

That is 10% over 5 years, with no payments at the end of year with value owed being 10,000.

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10y ago

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