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#### PJF

of a contract. I need to calculate the PV of that payment asof the date the

contract is signed based on the discount rate that includes the two years

during which no payments were made.

Example:

Contract signed 1/1/2005

no payments due 2005 or 2006

principal due in full 1/1/2007

discount rate 5%

Question: how do I calculate the discounted value of the principal from

1/1/2005 until principal payment due date on 1/1/2007, considering there are

no payments due either in 2005 or 2006? I know what the PV is but can't get

to it in Excel.

Any suggestions would be appreciated.

PJF