PV
The PV function returns the present value of an investment based on periodic, constant payments and a constant interest rate.
Syntax
PV (Rate, Nper, Pmt?, FV, Type?) - > Number
Arguments
Rate
Number, Node reference
The interest rate per period.
Nper
Number
The total number of periods.
Pmt?
Number, Node reference
Equal payments paid out each period during the course of the investment term. This is an optional argument.
FV
Number
The future value of investment. Cash outflows are considered as negative and cash inflows as positive.
Type?
Number
Indicates when the payments are made. Type is zero if payments are made at the end of the period and non-zero if payments are made at the start of the period. This is an optional argument and when omitted, it is considered to be zero.
Example
Consider a Loan of $20000 for which interest payments are made at the end of each year for 6 years. The objective is to calculate the present value where the interest rate is 7%.
Interest Rate
7%
7%
7%
7%
7%
7%
Number of periods
1
2
3
4
5
6
Payments Made
1400
1400
1400
1400
1400
1400
Type
0
0
0
0
0
0
To achieve this, the following formula should be written in the [Present Value] node:
PV ([Interest Rate], [Number of Periods], [Payments Made],0,0)
Result
Present Value
₹ -1,308.41
₹ -2,531.23
₹ -3,674.04
₹ -4,742.10
₹ -5,740.28
₹ -6,673.16
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