calculating the present value of X

[berlead]

I'm trying to calculate the present value (or NPV) of $X. The scenari
is as follows. If I give you $x each year for 10 years, what woul
each year's value of X be in todays dollars, assuming a 2% interes
rate? I am assuming I can then sum the years to arrive at todays tota
value.

Hope this makes sense. I now there is the PV and NPV formula's i
Excel, but I couldn't figure out how to apply my data.

Cheers and thanks for your reply

 

[NH]

Say col a contains years (1 thru 10)
col b contains X$ (again year 1 thru 10)
on col c use formla
=B1*1/(1+2%)^A1
and copy that across col c for 10 years
Then sum Col c
That is the Present value of 10 equal payments

You can get the same result using
=PV(2%,10,10)

 

[berlead]

IT worked