Type the Excel function that gives, as a positive number, the deposit today that grows to $25,000 in 6 years at 5 %.
Type the Excel function that gives, as a positive number, the deposit today that grows to $25,000 in 6 years at 5 %.
Answer
=-PV(0.05,6,0,25000)
fv positive (you will receive it), so PV returns the deposit negative; the leading minus flips it to 18,655.38.
Bigel, Introduction to Financial Analysis (CC BY 4.0) §10.2 (the reciprocal factor) — shape only; original scenario