Present value calculations The present value or "PV function" in Excel is used to calculate the current value of future payments. Consider this example: Suppose your uncle sends you a $10,000 certificate of deposit in your name which will earn 4% interest for the investment period. Under the terms of his gift, you can withdraw the funds after 4 years on the day of your graduation. Use Excel functions to calculate the value of the amount your uncle deposited today to have $10,000 after you graduate. (Note: The certificate of deposit calculates and pays any earned interest at the beginning of each year.)
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