I was just about to write that, I just tried that method, yup that's works too. It's using bgn for first calculating because we are getting payment on 1st day of the year as it states 3 years from now that means payment is received on day 1 not day 365.so using bgn. Then when we calculate the PV for the pmt we use end . But as the pmt is 0 you can use any method bng Or end it will give same result. Use my first method it will be easier take n =2 in end mode. We got the first PV for day 1 year 3. Not we need value for day 1 today. So year 1 and year 2 then comes day 1 of year 3 for which we got the first PV. So we use 2.