PV

Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.

Parameter List

Syntax
PV(ratenumber_of_periodspayment_amount
[future_value]
[end_or_beginning]
)
rate

The interest rate. For example: 2%.

number_of_periods

The number of payments to be made. For example: 12.

payment_amount

The amount per period to be paid. For example: -100. If payment_value is omitted, you must include the future_value argument.

[optional] future_value

The future value remaining after the final payment has been made. For example: 0. If future_value is omitted, it is assumed to be 0 (zero), and you must include the payment_amount

[optional] end_or_beginning

Whether the payments are due at the end (0) or beginning (1) of each period. For example: 0 or 1. The default type is 0.

Examples

PV(20%, 300, 5000, -7000, 0) returns -$25,000.00