This video would explain two of the most important financial functions in excel that is the present value (PV) and future value (FV) functions.
Present Value gives the current value of future cash flows while future value specifies the future worth of current cash flows.
In excel we use = PV function to calculate the present value and =FV function to calculate future value specifying the rate of interest, no. of periods, amount, type of payment.
I have tried to explain the basic concept of what present value and future value means and why is it required.
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