"There is as such no formula for the PV for a single cash flow"

=PV(0.03,3,,-120) = 109.82

"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