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Calculating the present value of an annuity using Microsoft Excel is a fairly straightforward process if you know the annuity's interest rate, payment amount, and duration. Calculating this value ...
Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.
The PMT function is an Excel Financial function that returns the periodic payment for an annuity. The formula for the PMT function is PMT(rate,nper,pv, [fv], [type]). The NPV function returns the ...
Before explaining how to find the present value of an annuity, we should first define the present value of an annuity. In simplest terms, this is the cash value of all your future annuity payments.
As with the present value of an annuity, you can calculate the future value of an annuity by turning to an online calculator, formula, spreadsheet or annuity table. You’ll need this information: ...
The future value of an annuity is the total value of payments at a future point in time. The present value is the amount of money required now to produce those future payments.
Find out how the annuity formula works and how to calculate present and future value. Get a simple breakdown of key concepts.
This Technology Workshop illustrates how to leverage a number of functions to perform calculations in Excel involving the time value of money.
To determine the value of a bond today—for a fixed principal (par value) to be repaid in the future—we can use an Excel spreadsheet.