SUMMATION combined with PV formula

  • Thread starter Thread starter turjes
  • Start date Start date
T

turjes

Greetings,

I am using EXCEL 2008 on a MAC. I am trying to use the Present Value formula
in a summation formula. The problem is that I don't see a SUMMATION formula
(the uppercase SIGMA sign) anywhere, I even tried looking it up.

My PV function would look like this:

PV = FV/(1+r)^i

With the summation formula being utilized with that, I want it to sum up the
PV going from i=6 to i=12. Is there any way to do that in Excel? Any help
would be appreciated, thank you!
 
turjes said:
Greetings,

I am using EXCEL 2008 on a MAC. I am trying to use the Present Value formula
in a summation formula. The problem is that I don't see a SUMMATION formula
(the uppercase SIGMA sign) anywhere, I even tried looking it up.

My PV function would look like this:

PV = FV/(1+r)^i

With the summation formula being utilized with that, I want it to sum up the
PV going from i=6 to i=12. Is there any way to do that in Excel? Any help
would be appreciated, thank you!
Click to expand...

Not sure, but would this work?

start (s) = 6, end (e) = 12

= (FV*((r + 1)^(1 - s) - (r + 1)^(-e)))/r

Dana DeLouis
 
Dana DeLouis said:
Not sure, but would this work?

start (s) = 6, end (e) = 12

= (FV*((r + 1)^(1 - s) - (r + 1)^(-e)))/r

Dana DeLouis
Click to expand...

Hi Dana, thank you for your response. I have a question though. How would I
enter that in Excel? I'm confused about how to enter the "start (s) = 6, end
(e) = 12" command. If you could please provide me with step-by-step
instructions, I would really appreciate it. Thank you again for your help!
 
Are you trying to do this summation with one function? That's going to be
most difficult.

The most common way people would solve this problem is:
1. Enter FV and r in, say, a1 and a2
2. Enter the numbers 6 to 12 in, say, b1:b7
3. In c1, enter =$a$1/(1+$a$2)^b1
4. Copy c1 down to c7.
5. In c8, enter =sum(c1:c7)
In less than a minute, you're done.

Regards,
Fred.
 
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