TVM13 - Present Value of an Annuity
This is a present value of an annuity problem.
What is the present value of rental receipts of $7,000 to be received at the end of each of the next 6 years when discounted at 11.5%?
First, plug in the known values into the appropriate cells:
The number of periods – NPER – is 6
The interest rate – Rate – is 11.5%
The payment – PMT – is $7,000.00
Going to the formulas tab, look for the PV function.
The function wizard pops up
The PV is ($29,192)