# How do I use the Excel financial formulas to calculate present value, future value and discount rates?

#### Solution Preview

It is really very easy to calculate using an Excel sheet.

The explanations are as follows:

(1) PRESENT VALUE:

Open a new Excel sheet and click on Insert on the Menu Bar. Then click on fx Function, a window would appear click on Financial in function category and select PV from the Function name and click OK. You will see a window that asks for- Rate, Nper, Pmt, Fv and Type.

In Rate- put the discount rate,

Nper-Number of annuity ...

#### Solution Summary

The solution does a very job of explaining exactly how to use several of the financial functions in Excel: PV, FV, and IRR

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