Discounted Value of money
Thanks Niek and Ron for your replied.
I will try PV function..
Regards,
Murthy
"Ron Rosenfeld" wrote in message
...
On Thu, 14 Feb 2008 13:14:26 +0530, "Murthy" wrote:
I have this following problem.
If a certain amount (P) is receivable after certain period, I would like
to
know the present value (V) of that future receipt (P), discounted at a
certain percentage (R). The discounting has to be done on a monthly
basis
(like we compound interest on a monthly basis in the reverse case..)
I am not able to find a worksheet function for this. Can someone please
help?
- Murthy
The PV worksheet function is designed to do just this.
I'm not sure what version of Excel you are using, but had you typed
"Present
Value" into the HELP bar, the first choice returned in Excel 2002 was the
PV
function.
Just divide your annual interest rate by 12 for the argument, and also
express
the number of periods (term) argument in months, in order to account for
monthly discounting.
--ron
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