Loading
Ozgrid Excel Help & Best Practices Forums

Excel Video Tutorials / Excel Dashboards Reports



Page 1 of 2 1 2 LastLast
Results 1 to 10 of 12

Thread: Formula For Pv Factor

  1. #1
    Join Date
    19th May 2006
    Posts
    41

    Formula For Pv Factor

    Which formula should I use to look for the present value factor if I have the interest rate and the # of periods. Please see attached file.

    Thanks in advance
    Attached Files. REMINDER! OzGrid accepts no responsibility for ANY adverse effects as a result from downloading attached files. ALWAYS run an up-to-date virus scan and disable macros.

    Excel Video Tutorials / Excel Dashboards Reports


  2. #2
    Join Date
    8th December 2006
    Location
    New Zealand
    Posts
    3,918

    Re: Formula For Pv Factor

    Do you have the payment made each period?

  3. #3
    Join Date
    19th May 2006
    Posts
    41

    Re: Formula For Pv Factor

    Yes, the payments are on the attached.

    Tks

    Excel Video Tutorials / Excel Dashboards Reports


  4. #4
    Join Date
    8th December 2006
    Location
    New Zealand
    Posts
    3,918

    Re: Formula For Pv Factor

    So for the first row is this correct?

    Interest Rate = 5%
    No of periods will be = 12 as its 30/06/02007 - 30/06/2008
    Payment per month = 846,540.92

    Is that correct?

  5. #5
    Join Date
    7th December 2005
    Location
    Hampshire, England
    Posts
    4,898

    Re: Formula For Pv Factor

    What is the mathematical formula to get this factor?

    Excel Video Tutorials / Excel Dashboards Reports


  6. #6
    Join Date
    8th December 2006
    Location
    New Zealand
    Posts
    3,918

    Re: Formula For Pv Factor

    Quote Originally Posted by ByTheCringe2
    What is the mathematical formula to get this factor?
    It appears to be E column / C column. Which doesnt really make sense?

    Anyway that means you need to calculate the present value which is why I asked the questions above. i think I may be off track tho.

    More details would be nice.

  7. #7
    Join Date
    2nd December 2004
    Location
    Frankfurt, D
    Posts
    383

    Re: Formula For Pv Factor

    enter the following formula in J7 and copy down:

    J7: =ROUND(1/(1+$J$4)^$G7,4)

    filippo

    Excel Video Tutorials / Excel Dashboards Reports


  8. #8
    Join Date
    19th May 2006
    Posts
    41

    Re: Formula For Pv Factor

    The formula worked.

    Thanks

    Excel Video Tutorials / Excel Dashboards Reports


  9. #9
    Join Date
    8th December 2006
    Location
    New Zealand
    Posts
    3,918

    Re: Formula For Pv Factor

    Quote Originally Posted by filo65
    enter the following formula in J7 and copy down:

    J7: =ROUND(1/(1+$J$4)^$G7,4)

    filippo
    Well done, howd you come up with that?

  10. #10
    Join Date
    2nd December 2004
    Location
    Frankfurt, D
    Posts
    383

    Re: Formula For Pv Factor

    Reafidy,

    -concerning the round is because the data mgiv provided had only 4 digits
    -concerning the formula, it depends: up to one/one and a half years, it's normally used the simple actualization, that is = C / (1 + r% * dt ) ( they are normaly deposit rates calculated normally on a ACT/360 day basis ); above the one year mark ( market convention ) one normally switch to a compound actualization = C * (1 + r% )^t, because you assume the capital to be reinvested at same rate for the time t ( day convention: ACT/ACT, 30/360, etc. ) which actually is not the case, but it's easy and fast to calculate ( basically it assumes a flat yield curve ). Normally in financial markets on the base of deposit, futures and swap rates, one calculate a zero curve ( with the bootstrapping method ) and from there a REAL the discount curve, for each maturity.
    having that you can calculate the pv any of your investments.

    filippo

    Excel Video Tutorials / Excel Dashboards Reports


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Possible Answers

  1. Rounding Up By A Factor
    By csj1 in forum EXCEL HELP
    Replies: 8
    Last Post: May 22nd, 2007, 23:59
  2. Nested If Factor
    By Suzanne in forum EXCEL HELP
    Replies: 5
    Last Post: April 17th, 2007, 23:26
  3. Interest Factor Tables?
    By Chino14 in forum EXCEL HELP
    Replies: 1
    Last Post: February 12th, 2003, 18:51

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
porno