TVM20- Present Value of a Single Sum
What amount should be deposited in a bank account today to grow to $15,000 three years from today? Use an interest rate of 8.5%.
Compute the present value of a future amount.
Enter the known variables.
The future value, FV, is $15,000.
The rate is 8.5%
The number of periods, NPER, is 3
We go to the Formulas tab and look for the PV function.
We click on PV,
We click on rate,
We click on NPER.
The present value, PV, is -$11,744.