How to Use PV Function in Excel | Financial Functions | Present Value

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How to Use #PV_Function in #Excel | #Financial_Functions | #Present_Value
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PV function or present value function is a useful function in finance. If you want to see what is the present value of a certain investment or loan, you can use this another financial function in excel. the PV function uses interest rate, number of payments, the value of each payment for calculating the present value of the investment.
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This is incorrect- Don't you have to put the minus sign in front of the PV and then calculate?

unityaboriginelove
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Sorry but this is incorrect. €265 multiply by 36 months = €9.540. The PV of that amount based on an annual interest rate of 0, 05 (5%) equals to €8.841 and not €4.384. The reason is that you forget to divide the annual interest rate by 12 (months). So the correct equation has to be PV(B1/12, B2, B3).

charalambosnicolaides
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Thanks for the simplified approach to PV formula.

nipunperforms
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How could I do this in reverse? I'm trying to set up bills spreadsheet. I want to show a balance as I input payments.

mclovin
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