# 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

<table><thead><tr><th width="140">Arguments</th><th width="207">Datatype</th><th>Description</th></tr></thead><tbody><tr><td>Rate</td><td>Number, Node reference</td><td>The interest rate per period.</td></tr><tr><td>Nper</td><td>Number </td><td>The total number of periods.</td></tr><tr><td>Pmt?</td><td>Number, Node reference</td><td>Equal payments paid out each period during the course of the investment term. This is an optional argument.</td></tr><tr><td>FV</td><td>Number</td><td>The future value of investment. Cash outflows are considered as negative and cash inflows as positive.</td></tr><tr><td>Type?</td><td>Number</td><td>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.</td></tr></tbody></table>

### 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%.

<table><thead><tr><th width="114">Year</th><th width="134">1</th><th width="106">2</th><th width="99">3</th><th width="94">4</th><th width="99">5</th><th width="103">6</th></tr></thead><tbody><tr><td><mark style="color:purple;">Interest Rate</mark></td><td>7%</td><td>7%</td><td>7%</td><td>7%</td><td>7%</td><td>7%</td></tr><tr><td><mark style="color:red;">Number of periods</mark></td><td>1</td><td>2</td><td>3</td><td>4</td><td>5</td><td>6</td></tr><tr><td><mark style="color:green;">Payments Made</mark></td><td>1400</td><td>1400</td><td>1400</td><td>1400</td><td>1400</td><td>1400</td></tr><tr><td>Type</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td></tr></tbody></table>

To achieve this, the following formula should be written in the \[Present Value] node:

<mark style="color:blue;">**`PV`**</mark>**` ``(`**<mark style="color:purple;">**`[Interest Rate]`**</mark>**`,`` `**<mark style="color:red;">**`[Number of Periods]`**</mark>**`,`` `**<mark style="color:green;">**`[Payments Made]`**</mark>**`,0,0)`**

### Result

<table data-header-hidden><thead><tr><th width="108">Column1</th><th align="center">Column2</th><th align="center">Column3</th><th align="center">Column4</th><th align="center">Column5</th><th align="center">Column6</th><th align="center">Column7</th></tr></thead><tbody><tr><td>Present Value</td><td align="center">₹ -1,308.41</td><td align="center">₹ -2,531.23</td><td align="center">₹ -3,674.04</td><td align="center">₹ -4,742.10</td><td align="center">₹ -5,740.28</td><td align="center">₹ -6,673.16</td></tr></tbody></table>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.valq.com/model/formula-functions/finance-functions/pv.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.