# Continuous Compounding Formula in Excel

August 9, 2022
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We can perform different sorts of calculations and statistical analyses in Excel/Spreadsheet WPS. Sometimes while doing statistical analysis, you are required to calculate the Present Value. Manual calculations of determining the present value are complex and laborious and there are high chances of errors in it. Present Value is necessary in calculating continuous compounding amount based on the desired number of years. Excel/Spreadsheet WPS provides a simple solution to this problem by allowing multiple methods to calculate Present Value Continuous Compounding Excel/Spreadsheet (2016/2019/Mac/Online). Using these methods, you can calculate present value continuous compounding very easily in your statistical analysis.

This article covers the basic methods to calculate the present value continuous compounding Excel/Spreadsheet WPS (2016/2019/mac/online). Once you go through this article, you will be able to easily calculate the present value continuous compounding Excel/Spreadsheet WPS. Let’s cover the simple methodologies to calculate present value continuous compounding Excel/Spreadsheet WPS (2016/2019/Mac/Online).

Three different ways to Calculate Present Value Continuous Compounding Excel/Spreadsheet WPS

How to Calculate Present Value Continuous Compounding Excel/Spreadsheet WPS Using Insert Function Button

1.Open WPS Excel /Spreadsheet WPS file where you want to calculate present value.

2.Click on the cell where you want to calculate the present value.

3.Go to Formulas Tab.There will be an Insert Function button in it.

4.Click on this button.A new dialogue window will appear.In the search for a formula bar write “PV”.PV (Present value) shall appear in the below list.

5.Click on PV and press OK.A new function argument window shall appear.

• To calculate Present value, following five parameters are required.

• i.e. Rate (Interest rate)

• Nper (Number of Payment periods)

• Pmt (Payment made in each period. It must be in negative)

• Pv (Present value of future payments. It is optional. If it is omitted, then Excel takes it as zero)

• Type (When Payments are due. It is optional as well, 1 = beginning of period and 0 = end of period. By default it is taken as 0 by Excel/Spreadsheet WPS)

You can either enter the values of these five parameters or you can use excel value links as used in the picture below.

5.After entering all five parameters, press Enter.

6.Present value will be calculated.Now use the formula shown the picture to calculate continuous compounding based on the present value calculated.

How to Calculate Present Value Continuous Compounding Excel/Spreadsheet WPS Using Financial Button

1.Open WPS Excel /Spreadsheet file where you want to calculate present value.

2.Go to Formulas Tab. There will be a Financial Button in it.

3.Click on this button.A drop-down list will appear. In the list, find PV and click on it.A new function argument window will appear.

• To calculate Present value, the following five parameters are required.

• i.e.,Rate (Interest rate)

• Nper (Number of Payment periods)

• Pmt (Payment made in each period, It must be in negative)

• Pv (Present value of future payments, It is optional. If it is omitted then Excel takes it as zero)

• Type (When Payments are due. It is optional as well, 1 = beginning of period and 0 = end of period. By default it is taken as 0 by excel)

You can either enter the values of these five parameters or you can use excel value links as shown in the below picture.

4.After entering all five parameters, press enter.

5.Present value will be calculated.Now use the formula shown the picture to calculate continuous compounding based on the present value calculated.

How to Calculate Present Value Continuous Compounding Excel/Spreadsheet WPS Manually

1.Open WPS Excel /Spreadsheet file in which you want to calculate present value.

2.Click on the cell where you want to calculate the present value.Write “=PV then press Tab. Present value formula will be initiated.

• To calculate Present value, following five parameters are required.

•  i.e.Rate (Interest rate)

• Nper (Number of Payment periods)

• Pmt (Payment made in each period, It must be in negative)

• Pv (Present value of future payments, It is optional. If it is omitted then Excel takes it as zero)

• Type (When Payments are due. It is optional as well, 1 = beginning of period and 0 = end of period.

By default it is taken as 0 by excel)You can either enter the values of these five parameters or you can use excel value links as shown in the picture below.

3.After entering all five parameters, press Enter.Present value will be calculated.

Now use the formula shown the picture to calculate continuous compounding based on the present value calculated.

This article has covered the simplest ways on calculating Present value continuous compounding Excel/Spreadsheet WPS (2016/2019/Mac/Online) using Insert Function Button, Financial Button and Manually. You can use these simple steps as explained above and easily calculate Present value continuous compounding Excel/Spreadsheet WPS (2016/2019/Mac/Online) whenever required.

Hopefully you have learned How to calculate Present value continuous compounding Excel/Spreadsheet WPS (2016/2019/Mac/Online). If you want to know more about Excel features, you can follow WPS Academy to learn. You can also download WPS Office to edit the word documents, excel, and PowerPoint for free of cost. Download now! And get an easy and enjoyable working experience.