## With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

No credit card required

# Calculate the Present Value of an Investment

You can use the PV function in Excel to help you determine the present value of an investment. Suppose you win a prize and you are offered \$5,000 today or equal payments of \$100 per month for five years at an interest rate of 8% compounded annually. Which should you choose? The PV function can tell you and the organization offering the prize whether \$5,000 today is less than, equal to, or greater than the value of \$100 per month for five years at an interest rate of 8% compounded annually. You can use the PV function to calculate the value of an annuity or to determine how much you will pay overall if you make a series of loan payments.

The PV function requires ...

## With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

No credit card required