To calculate the interest rate or growth rate using a spreadsheet or financial calculator, the present value and the future value most have opposite signs.

Question

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In financial calculations, the present value (PV) and future value (FV) typically have opposite signs because they represent opposite cash flow directions. PV is usually negative, indicating an outflow (investment), and FV is positive, indicating an inflow (return). This convention helps in solving for the interest rate or growth rate accurately.

To Calculate the Interest Rate or Growth Rate Using a Spreadsheet