We can solve for any one of the following four potential unknowns: future value, present value, the discount rate, or the number of periods. The following lists formulas that can be used in Excel to solve for each input in the time value of money equation.
To Find Enter This Formula
Future value = FV (rate,nper,pmt,pv)
Present value = PV (rate,nper,pmt,fv)
Discount rate = RATE (nper,pmt,pv,fv)
Number of periods = NPER (rate,pmt,pv,fv)
For example:
If we invest $25,000 at 12 percent, how long until we have $50,000?
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