Description Number of periods Financial Calculator Key N Excel Terms NPer Periodic interest rate I/Yr Rate Present value PV PV Annuity payment PMT PMT Future value FV FV There is another term that you will often encounter when performing time value of calculations: type. The type term used in Excel time value functions is used to represent the ; if the payment is made at the end of the year, the value of If the payment is made at the beginning of the year, the value of type will be type will be Present value calculations The present value or "PV function" in Excel is used to calculate the current value of future payments. Consider this example: Suppose your uncle sends you a $10,000 certificate of deposit in your name which will earn 4% interest for the investment period. Under the terms of his gift, you can withdraw the funds after 4 years on the day of your graduation. Use Excel functions to calculate the value of the amount your uncle deposited today to have $10,000 after you graduate. (Note: The certificate of deposit calculates and pays any earned interest at the beginning of each year.) A B D E 1 Enter the given values here 2 Rate per period 3 Number of periods 4 Future Value 5 Type 6 7 Calculate present value PV =PV(rate, nper, pmt, [fv], [type]) 8 9