Chapter 2 / Time Value of Money Explain how the formula is derived step by step for four time periods. Use an EXCEL and in a sheet named FV provide the numerical evidence using the appropriate mathematical formulas from the present time to the forth period. Use a present value and a return rate of your choice. Then in your WORD file with your explanations provide the appropriate formulas using the equation editor. PV0 is the value of your present time, r is the return rate you use and n the time periods, for your case it is 4.