Berk/DeMarzo, Corporate Finance

Annuity Spreadsheet

Enter 4 of the items N, I/Y, PV, PMT, or FV in the shaded area below, and the annuity calculator will
solve for the fifth item. The solution will be such that the cash flows shown on line 14 have NPV = 0.
Instructions
Note that PV, PMT, and FV are initially set to round to the nearest dollar. To change this default, right
click and select "Format Cells > Number > Decimal Places" and enter the desired precision.

Given
Solve For PV
Date
PV
PMT
FV
Cash Flow

N
5

I/Y
9%

PV

PMT
-0.555

FV
0

Excel Formula

2.16
0

=PV(0.09,5,-0.555,0)

(1)

(1)

...

(1)

(1)

(1)
0
(1)

PERIOD
C(t)
NPV

0
-4,422,264

1
-570,256
1,372,933.972

2
1,051,000

3
1,051,000

4
1,051,000

5
1,051,000

6
1,051,000

-16500

2167

5063

7034

7614

1996

7374

7
1,051,000

8
1,051,000

9
1,051,000

10
2,201,000

11
1,147,160