FormuladrillValue of an annuity
An Excel formula exercise from Formuladrill. Solve it with a formula bar on a live sheet in your browser, and it is checked the moment you submit.
The task
What is the value today of receiving the yearly payment in B1 for the number of years in B3, at the rate in B2? The answer must be positive. Put it in B4.
What this exercise teaches
Excel treats money you pay and money you receive with opposite signs; that is why the minus is needed.
A hint if you get stuck
PV(rate, periods, payment). A minus in front of the payment makes the result positive.
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