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Net Present Value: Worksheet on 3/31

This article explores the concepts of future value (FV) and present value (PV) using financial worksheets. It demonstrates how to calculate future value using the formula FV = PV * (1 + r)^T, illustrated with an example of an investment of $50,000 growing at an interest rate of 4% over 10 years, resulting in an FV of $74,012.21. Additionally, the article discusses present value calculations using the formula PV = FV * (1 + r)^(-T), with an example of determining the present value of $80,000 due in 10 years at the same interest rate, yielding $54,045.13.

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Net Present Value: Worksheet on 3/31

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  1. Net Present Value: Worksheet on 3/31 FV = future value PV = present value r = interest rate T = # years #1 FV = (PV)(1+r)T FV = (50,000)(1.04)10 FV = 74,012.21

  2. Net Present Value: Worksheet on 3/31 FV = future value PV = present value r = interest rate T = # years #2 PV = (FV)(1+r)(-T) PV = (80,000)(1.04)(-10) PV = 54,045.13

  3. Net Present Value: Worksheet on 3/31 #3

  4. Net Present Value: Worksheet on 3/31 #3

  5. Net Present Value: Worksheet on 3/31 #3

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