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Tag: Present value

Future value vs. Present value examples in Excel

This tutorial shows how present value and future value are related using the example below:   Explanation In the example shown, Years, Compounding periods, and Interest rate are linked in columns C and F like this: F5=C9 F6=C6 F7=C7 F8=C8 The formula to calculate future value in C9 is: =FV(C8/C7,C6*C7,0,-C5,0) The formula to calculate present value in F9 is: =PV(F8/F7,F6*F7,0,-F5,0) No matter how…