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
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