| | | The present value is the total amount that the payments are worth now. |
| | | The "rate" and "nper" MUST be expressed in the same units of time: years, months or days. |
| | | The "rate" can either be entered with the percentage sign or as a decimal. |
| | | The "pmt" typically contains principal and interest but no other fees or taxes. |
| | | The "pmt" cannot change over the life of the investment. |
| | | If "pmt" is left blank, you must include "pv". |
| | | If "pmt" is left blank, then 0 is used. |
| | | If "pv" is left blank, then you must include "pmt". |
| | | If "pv" is left blank, then 0 is used. |
| | | If "type" is left blank, then 0 is used. |
| | | Any cash you pay out, such as deposits or savings, is represented by a negative number. |
| | | Any cash you receive, such as a salary or income, is represented by a positive numbers. |
| | | Example 1 & 2 - How much is £2000 worth in 3 years time with an interest rate of 5.8% (compounded yearly). |
| | | Example 3 - This is checking the answer in Examples 1 & 2. |
| | | Example 4 - How much is £2,000 worth is 3 years time with an interest rate of 5.8% (compounded monthly). |
| | | Example 5 - How much will I have saved if I deposit £150 every month for 3 years assuming a fixed annual growth rate of 5.8% which is compounded monthly. |
| | | Example 6 - This is checking the answer in Example 4. |
| | | Example 7 - How much would I have to pay back if I borrowed £20,000 for 4 years at an annual interest rate of 8%. |
| | | Example 8 - How much will I have saved if I have £2,000 in my account and I deposit a further £150 every month for 3 years with an average annual interest rate of 5.8%. |
| | | Example 9 - This is checking the answer in Example 8. |
| | | Example 10 - This is checking the above answers by returning the correct interest rate. |
| | | Example 11 - How much would I still have to pay back if I borrowed £15,000 for 5 years at an annual interest rate of 12.5% and was capable of repaying back £200 a month. |
| | | Example 12 - How much will I need to pay back if I borrow £15,000 for 5 years at an annual interest rate of 12.5%. |
| | | Example 13 - How much will I have saved if I deposit £200 a month for 5 years at an annual interest rate of 12.5%. |
| | | Example 14 - This is checking the answer in Example 11. |
| | | | A | | 1 | =FV(5.8%,3,,-2000) = 2368.574 | | 2 | =FV(0.058,3,,-2000) = 2368.574 | | 3 | =PV(0.058,3,,-2368.574) = 2000 | | 4 | =FV(0.058/12,3*12,,-2000) = 2379.114 | | 5 | =FV(0.058/12,3*12,-150) = 5882.799 | | 6 | =PV(0.04/12,2*12,150,-3741.433) = 0 | | 7 | =FV(0.08,4,,-20000) = 27209.779 | | 8 | =FV(0.058/12,3*12,-150,-2000) = 8261.913 | | 9 | =A5+A4 = 8261.913 | | 10 | =RATE(3*12,-150,-2000,8261.913)*12 = 5.8% | | 11 | =FV(12.5%/12,5*12,-200,15000) = -11378.69 | | 12 | =FV(0.125/12,5*12,0,-15000) = 27933.24 | | 13 | =FV(0.125/12,5*12,-200,0) = 16554.55 | | 14 | =A12-A13 = 11378.69 |
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