How To Reproduce Formula In Excel

Aug 12, 2013

In my course notes the present value formula is calculated as follows:

$650,000 / [1 + 0.10 ] ^ 5
$650,000 / [ 1.10] ^ 5
$650,000 / 1.61
$403,726.70
$403,726

When I enter the formula
=650000/(1.10^5) it returns 403,598.86

Also if I enter the original formula in 2 steps then I get the course material answer.

How can I get it so that my formula returns the same result as the course notes?

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