# 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

Arguments | Datatype | Description |
---|---|---|

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%.

Year | 1 | 2 | 3 | 4 | 5 | 6 |
---|---|---|---|---|---|---|

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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