Tag: PV function

What is PV function in Excel? PV function is one of  the Financial functions in Microsoft Excel that calculates the present value of a loan or an investment, based on a constant interest rate. You can use PV with either periodic, constant payments (such as a mortgage or other loan), or a future value that’s …

This tutorial show how to calculate the value of a bond on the issue date using the PV function. Explanation In the example shown, the formula in C10 is: =-PV(C6/C8,C7*C8,C5/C8*C4,C4) Note: This example assumes that today is the issue date, so the next payment will occur in exactly six months. See note below on finding the …

To get the present value of an annuity, you can use the PV function. Formula =PV(rate,periods,payment,0,0) In the example shown, the formula in C9 is: =PV(C5,C6,C4,0,0) Explanation An annuity is a series of equal cash flows, spaced equally in time. In this example, an annuity pays 10,000 per year for the next 25 years, with …

To calculate the original loan amount, given the loan term, the interest rate, and a periodic payment amount, you can use the PV function. Formula =PV(rate,periods,-payment) Explanation In the example shown, the formula in C10 is… =PV(C5/12,C7,C6) How this formula works Loans have four primary components: the amount, the interest rate, the number of periodic …