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    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:
    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