how to find present value?

[Paul Olson]

Look at NPV function.

For your example, the formula will be:


=NPV(0.085,15,15,15,15,15,15,15,15,15,15,15,15)-100
=10.17

Paul Olson

 

[Norman Harker]

Hi Shital & Paul!

Simpler, using Paul's data is:

=PV(8.5%,12,15,0,0)+100

But rents are usually paid or received in advance so it might be more
appropriate to use Type = 1 for the last argument.

Shital did quote 8.25%.

More precisely, the rent is unlikely to be paid on an annual basis and
assuming an annual effective borrowing rate to discount 15/12 received
monthly in advance:

=PV((1+8.25%)^(1/12)-1,12*12,15/12,0,1)+100
Returns: -16.5178052428925

But check your data on frequency of rent and whether borrowing rate is
annual effective or Nominal or whatever.