1. Guide To Excel For Finance: Introduction
  2. Guide To Excel For Finance: Linking Yahoo! Finance and Other Outside Financial Data To Excel
  3. Guide To Excel For Finance: PV And FV Functions
  4. Guide to Excel for Finance: Annuities
  5. Guide To Excel For Finance: Valuation Methods
  6. Guide To Excel For Finance: Goal Seek
  7. Guide To Excel For Finance: HLookup And VLookup
  8. Guide To Excel For Finance: Ratios
  9. Guide To Excel For Finance: Technical Indicators
  10. Guide To Excel For Finance: Advanced Calculations
  11. Guide To Excel For Finance: Conclusion

When it comes to saving or spending, a number of concepts include a cash flow each year, or period in question.  An annuity formula best summarizes how to address these matters in Excel.  (Related: What Is An Annuity? - Video )

Here is both a present and future value formula for an annuity:

PV = C((1 - 1 / (1 + r)t / r)

In the below example, an individual is able to save $10,000 per year for 10 years in the stock market and earn an estimate 10% per year.  The present value of that savings program is $61,445.

The future value of that savings program is $159,374.  At the end of that 10 year program, the savings will have grown to nearly $160,000.


Guide To Excel For Finance: Valuation Methods
Related Articles
  1. Retirement

    Are Annuities Retirement-Only Investments?

    Learn more about why annuities are generally purchased and the way that they can positively and negatively affect an individual preparing for retirement.
  2. Retirement

    Who Benefits From Retirement Annuities

    Annuities guarantee some degree of fixed income in retirement. But is the security worth the fees and less favorable tax treatment? How to decide.
  3. Investing

    Should You Buy an Annuity?

    There are both pros and cons of buying an annuity, so do your due diligence before investing in one.
  4. Investing

    Why an Annuity May Not Be Right for You

    An annuity, when compared to the many other options available, may not be the best choice.
  5. Retirement

    Guaranteed Retirement Income in Any Market

    By laddering annuities, you can be sure you'll have income no matter what the market does.
  6. Retirement

    Break Out Of Annuity Prison

    Annuities offer security but also lock up your cash. The secondary market could be your key.
  7. Financial Advisor

    Advising FAs: Explaining Annuities to a Client

    Conceptually speaking, annuities can be thought of as a reverse form of life insurance.
  8. Retirement

    Annuities Vs. Bonds: Which One Is Better For You?

    Compare the important features of annuities and bonds, and understand which investment vehicle is the better choice based on retirement goals.
  9. Investing

    Introduction to Annuities

    Everything you need to know about annuities.
Frequently Asked Questions
  1. What does negative shareholders' equity mean?

    A negative balance in shareholders' equity, also called stockholders' equity, means that liabilities exceed assets and can ...
  2. Are retained earnings listed on the income statement?

    Retained earnings are the cumulative net earnings or profit of a company after paying dividends and can be reported on the ...
  3. What are the main differences between return on equity (ROE) and return on assets (ROA)?

    ROE gauges how their investments are generating income; ROA measures how management is using its assets or resources to generate ...
  4. When is an expense ratio considered high and when is it considered low?

    Discover what is considered an exceptionally high or low expense ratio for a mutual fund or ETF, and learn why this figure ...
Trading Center