Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

The bond has a present value of $376.89. B. Bonds with Annuities Company 1 issues a bond with a principal of $1,000, an interest rate of 2.5% annually with maturity in 20 years and a discount rate ...

Most analysts use Excel to calculate NPV.You can input the present value formula, apply it to each year's cash flows, and then add together each year's discounted cash flows, minus expenditures ...

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.