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bpeltzer
 
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Default How do I manually calculate this formula PV(P3/1200,Q3,-N3*M3/100

You would calculate the PV of each individual cash flow, and add them up.
Ex: the PV of the first cash flow is N3*M3/100 (the payment) divided by
(1+P3/1200)^1 (the one-period discount). For the second cash flow, the
exponent on the discount would be 2, and so on, for all Q3 periods
(presumably that's Q3 months, based on the way this is set up).

"Claressa" wrote:

I am trying to figure out this formula to determine Present Value for Letters
of Credit issued to borrowers