## Explanation

The FV function is a financial function that returns the future value of an investment, given periodic, constant payments with a constant interest rate. The PV function returns the present value of an investment. You can use the PV function to get the value in today's dollars of a series of future payments, assuming periodic, constant payments and a constant interest rate.

This simple example shows how present value and future value are related. In the example shown, Years, Compounding periods, and Interest rate are linked in columns C and F like this:

```
F5=C9
F6=C6
F7=C7
F8=C8
```

The formula to calculate future value in C9 is based on the FV function:

```
=FV(C8/C7,C6*C7,0,-C5,0)
```

The formula to calculate present value in F9 is based on the PV function:

```
=PV(F8/F7,F6*F7,0,-F5,0)
```

No matter how years, compounding periods, or rate are changed, C5 will equal F9 and C9 will equal F5.