# 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>