excel pv of an annuity

How do I use Excel to find the present value of an annuity that starts in 3 years?

I need to use the PV and not NPV because I want to make the number of periods (nper) a variable. But the annuity begins in X (3) years and Excels PV function doesn’t let you say when to start.

You need to solve this as a two step calculation.

First calculate the Present Value of the annuity, ignoring the fact that it does not start for another 3 years.

Then calculate the present value of the previously calculated result; discounting it back 3 years.

The second number will be the answer to your question.

Finance Basics 4 – Calculating Annuities in Excel – Future Value for Annuities

Microsoft Excel 2010: Data Analysis and Business Modeling Microsoft Excel 2010: Data Analysis and Business Modeling
$25.97

Master the business modeling and analysis techniques that help you transform data into bottom-line results. For more than a decade, Wayne Winston has been teaching corporate clients and MBA students the most effective ways to use Excel to solve business problems and make better decisions. Now this award-winning educator shares the best of his expertise in this hands-on, scenario-focused guide—fu...
Applied Mathematics for the Managerial, Life, and Social Sciences Applied Mathematics for the Managerial, Life, and Social Sciences
$114.97

Market-leading APPLIED MATHEMATICS FOR THE MANAGERIAL, LIFE, AND SOCIAL SCIENCES, 5th EDITION, is a traditional text with a slightly modern feel. This new edition incorporates technology in such a way that both traditional and modern practitioners find the support they need to teach effectively. Continuing its tradition of mathematical accuracy, the new fifth edition teaches by application and use...
Finite Mathematics for the Managerial, Life, and Social Sciences Finite Mathematics for the Managerial, Life, and Social Sciences
$27.50

Coupling the best of traditional coverage with modern tools, market-leading FINITE MATHEMATICS FOR THE MANAGERIAL, LIFE, AND SOCIAL SCIENCES, Ninth Edition, applies math to your world. It delivers just the right balance of applications, pedagogy, and technology to help you succeed in the course. Teaching by application, the text is packed with real-life examples that motivate and enlighten you. It...



Leave a Comment