Present value with lag time

[mridzuani]

Hi,

I have the following data:

T1 1,000
T2 1,000
T3 1,000
T4 1,000
T5 1,000
T6 1,000

Interest rate 1%

How do I calculate the PV for T4 to T6 at T0?

[alansidman]

https://www.techonthenet.com/excel/formulas/pv.php

[josephteh]

You can use the present value factor:
PV Factor.png

PV = FV x PV Factor = $1,000 x 1/(1+1%)^4 for period 4