Financial FunctionsAdvanced

PV Function

Calculate the present value of an investment using the PV function.

Task:

You are evaluating an investment opportunity and want to know the present value of future cash flows. Calculate the present value of the investment in cell B7 using the PV function, given the rate, number of periods, and payment.

Interactive Spreadsheet

Read about PV

Hints

+5 XPno-hints bonus

Solve it on your own to keep the bonus. Each hint gets one step closer to the formula.

Variations of PV

0/3

The same formula in the other shapes it takes at work.

  1. PV Function

    Calculate the present value of an investment using the PV function.

    CoreAdvanced
  2. PV of a single future amount

    No payments, just one sum later — what is it worth today?

    Advanced
  3. PV: how much can I borrow?

    Start from the monthly payment you can afford and work back to the loan.

    Advanced

The data in this exercise

This is the grid you start with. Cell references in the task — B6, C2 — point at the row numbers and column letters below.

7 rows × 2 columns1 cell you fill in
AB
1ParameterValue
2Rate0.05
3Nper10
4Pmt-1000
5Fv0
6Type0
7PV

Functions used here

What this exercise teachesMay contain the answer

The PV function is essential for financial analysis, allowing you to determine the present value of future cash flows, which is crucial for investment decisions.