TVM03 - Present Value of a Single Sum
What is the present value of $115,292 to be paid in six years discounted at 11.5% compounded annually?
First, plug in the known values into the appropriate cells:
The future value – FV – is $115,292
The interest rate – Rate – is 11.5%
The number of periods – NPER – is 6
The unknown – present value – PV is determined by
Going to the formulas tab, look for the PV function.
The function wizard pops up
The present value is $60,000