PV

[Bernard]

Can anyone tell me the formula appropriate to the
following question:

"Calculate the present value of an investment yielding
Euro 4,500.060 after 3 years at 5% interest per year."

Many thnaks


Bernard

 

[Norman Harker]

Hi Bernard!

Try:
=PV(5%,3,0,4500.06,0)
Returns: -3887.32102364755

Or by formula:
=4500.06/(1+5%)^3
Returns: 3887.32102364755

The logic of the PV function is that it uses the money flow sign
convention where investment deposits are negative and returns are
positive.
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
Can anyone tell me the formula appropriate to the
following question:

"Calculate the present value of an investment yielding
Euro 4,500.060 after 3 years at 5% interest per year."

Many thnaks


Bernard

 

[Jerry W. Lewis]

See Help for the PV() function.

Jerry

 

[Guest]

Many thanks

Bernard