Type the one-cell formula for the PV today of $2,000 a year for 5 years, first payment at the end of year 4, at 6 %.

Answer

=-PV(0.06,5,2000)/(1+0.06)^3

The annuity value 8,424.73 sits at t = 3; dividing by 1.06³ brings it to today: 7,073.56. Exponent 3 = first payment year − 1.

Bigel, Introduction to Financial Analysis (CC BY 4.0) §11.12 (timeline logic) — shape only; original scenarios