Thanks, that gave me what I needed.
"N Harkawat" wrote:
What I mean by Future_payment is the cell which holds the future value
so your formula really should have been
=A1/(1+B1)^C1
where cell A1 = future_payment
B1 = rate of interest per period
C1 = number of periods
There is as such no formula for the PV for a single cash flow
"Carmen" wrote in message
...
Is this something in one of the add-in packages? I tried the formula and
it
gives me a #NAME? error.
Thanks for your help!
"N Harkawat" wrote:
=future_payment/((1+r)^n)
where r is the rate of interest and n is the number of periods.
for instance present value of 120 three years from today = 120/1.03^3 =
109.81
"Carmen" wrote in message
...
Excel has a built in formula for calculating present value of an
annuity
(series of payments), but I am looking forward to finding a way to
calcuate
present value of a single sum (such as a note that accrues interest but
is
only paid at the end of the period - therefore only paid once).
Thanks
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