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Homework answers / question archive / What is the present value of a $800 annuity payment over six years if interest rates are 10%?
What is the present value of a $800 annuity payment over six years if interest rates are 10%?
Computation of Present Value using PV Function in Excel:
=-pv(rate,nper,pmt,fv)
Here,
PV = Present Value = ?
Rate = 10%
Nper = 6 years
PMT = $800
FV = 0
Substituting the values in formula:
=-pv(10%,6,800,0)
PV or Present Value = $3,484.21
So, Present Value is $3,484.21 If you have any doubt you can ask me through comment box.
