How Do You Calculate A Present Value Using Microsoft Excel?
Using Microsoft Excel to calculate the present value of a potential investment is a simple task once you learn the syntax of the required formula. Follow these easy steps and you can calculate present value using Microsoft Excel easily and quickly. Understand the concept of present value. Present value is one of the Time Value of Money calculations. Use it to answer questions such as, “What is the most expensive car or house I can buy, given the market interest rate and the maximum monthly payment I can afford?” In other words, it is what a given investment is worth today, at this time. Open Microsoft Excel. Click in the cell in which you wish the result of your formula to show. Type the following formula starter: =PV( Observe the screen tip that pops up as soon as you type your opening parenthesis. It looks like this: (rate, nper, pmt, [fv], [type]). This screen tip design will help you know what values to input. Enter the interest rate of your investment, divided by the number of tim
