Present Value of One Time Payment N Years in Future

[Will]

How do you calculate the present value of a one time payment that is N years
in the future?

 

[joeu2004]

How do you calculate the present value of a one time payment that is N years
in the future?

Suppose the future value is $100,000 in 20 years. You need to know
the annual "rate" -- an interest rate, average growth rate, or a
discount rate. Suppose it is 5%. Then the present value is:

=pv(5%, 20, 0, -100000)

 

[Murph]

I am a newbee to 2007 and have lost the function of saving a *.dbf file back
to a compatible database structure. Is there a fix?

 

[Roger Govier]

Hi

It has been removed from XL2007, but not from Access2007.
Your only options would therefore appear to be to transfer to access if
you have it, or save in a 97-2003 compatibility mode, and pick it up in
XL2003 (if you still have it) and export from there to db format.

 

[Stan Brown]

Sun, 10 Jun 2007 21:23:30 -0700 from Will <westes-
(e-mail address removed)>:

How do you calculate the present value of a one time payment that is N years
in the future?

If A1 is the future value, A2 is the interest rate per year, and A3
is the number of years, then the present value is

= A1 / (1+A2) ^ A3

Caution: A2 must be a percernt, e.g. .05 or 5% and not plain 5.