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PV( ) Function

Returns the present value of an investment.

PV(nPayment, nInterestRate, nTotalPayments)

Parameters

  • nPayment
    Specifies the periodic payment amount. nPayment can evaluate to a positive or negative number. PV( ) assumes that the payments are made at the end of each period.

  • nInterestRate
    Specifies the periodic interest rate. If the interest rate of an investment is annual and the payments are made monthly, divide the annual interest rate by 12.

  • nTotalPayments
    Specifies the total number of payments.

Return Value

Numeric

Remarks

PV( ) computes the present value of an investment based on a series of equal periodic payments at a constant periodic interest rate.

Example

STORE 500 to gnPayment  && Periodic payments made monthly
STORE .075/12 TO gnInterest     && 7.5% annual interest rate
STORE 48 TO gnPeriods  && Four years (48 months)
CLEAR
? PV(gnPayment, gnInterest, gnPeriods)  && Displays 20679.19

See Also

Reference

CALCULATE Command

FV( ) Function

PAYMENT( ) Function

Other Resources

Functions