To calculate the present value of an investment using the PV function in Google Sheets, follow these steps:
- Open a new or existing Google Sheets document.
- Select the cell where you want the present value calculation to appear.
- Type "=PV(" into the selected cell.
- The PV function requires three arguments: rate, nper, and pmt. These arguments represent the interest rate, the number of periods, and the payment amount respectively.
- For example, if the interest rate is 5%, the number of periods is 10, and the payment amount is $1000, the formula would look like "=PV(0.05, 10, 1000)".
- You can replace these example values with the actual interest rate, number of periods, and payment amount for your investment.
- Press Enter to calculate the present value of the investment.
- The result will be displayed in the selected cell, representing the present value of the investment based on the provided arguments.