USING MICROSOFT EXCEL
USING THE UPPER AND LOWER FUNCTIONS IN EXCEL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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FV
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PMT
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PV
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VDB
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Detailed explanation-1: -PV is an Excel financial function that returns the present value of an annuity, loan or investment based on a constant interest rate.
Detailed explanation-2: -PV, one of the financial functions, 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 your investment goal.
Detailed explanation-3: -Present Value of an Annuity Formula (PV) The formula for calculating the present value (PV) of an annuity is equal to the sum of all future annuity payments – which are divided by one plus the yield to maturity (YTM) and raised to the power of the number of periods.
Detailed explanation-4: -The formula for determining the present value of an annuity is PV = dollar amount of an individual annuity payment multiplied by P = PMT * [1 – [ (1 / 1+r)^n] / r] where: P = Present value of your annuity stream. PMT = Dollar amount of each payment.
Detailed explanation-5: -PV can be calculated in Excel with the formula =PV(rate, nper, pmt, [fv], [type]). If FV is omitted, PMT must be included, or vice versa, but both can also be included. NPV is different from PV, as it takes into account the initial investment amount.