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Help with PV calculations
I have an application that makes a single payment 2 years after the signing
of a contract. I need to calculate the PV of that payment asof the date the contract is signed based on the discount rate that includes the two years during which no payments were made. Example: Contract signed 1/1/2005 no payments due 2005 or 2006 principal due in full 1/1/2007 discount rate 5% Question: how do I calculate the discounted value of the principal from 1/1/2005 until principal payment due date on 1/1/2007, considering there are no payments due either in 2005 or 2006? I know what the PV is but can't get to it in Excel. Any suggestions would be appreciated. PJF |
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