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how to do a pv calculation in excel. Suppose you make quarterly payments of Rs 125000 per period for five years having an interest rate per annum of 7. Notice how the formula inputs appear.
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The PV Function Excel will be given as rate7412 nper45 pmt-125000. Now the term or number of periods and the rate of return can be used to calculate the PV factor for this sum of money with the help of the formula described above. The PV function uses the following arguments.
Open the TTEST function in any of the cells in the spreadsheet.
In order to calculate present value in Excel youll need to use the CPT PV formula. For example in the PV function in cell E3 the annual interest rate in cell A3 is converted into a monthly rate by dividing by 12 A312. PV rate nper pmt fv type. From the dialogue box that pops up select financial in the dropdown then scroll down and select PV which stands for Present Value.
