Present value calculations the present value or "pv function" in excel is used to calculate the current value of future payments. consider this example: suppose your uncle sends you a $10,000 certificate of deposit in your name which will earn 4% interest for the investment period. under the terms of his gift, you can withdraw the funds after 4 years on the day of your graduation. use excel functions to calculate the value of the amount your uncle deposited today to have $10,000 after you graduate. (note: the certificate of deposit calculates and pays any earned interest at the beginning of each year.)
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