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Syntax:
PV(Rate, NPer, Pmt [, FV] [, Type])
Description:
This returns the present value of an investment based on periodic constant payments and a fixed interest rate.
The function expects the following arguments:
Rate is the interest rate (per payment period)
NPer is the total number of payment periods.
Pmt is the annuity (payment made for each period).
FV (optional) is the future value (the total value after the last payment). If the argument FV is omitted, it will be set to zero.
Type (optional) is the timing of the payments:
0 or omitted: Payment at the end of each period.
1: Payment at the beginning of each period.
Example:
PV(6.5%/12, 12*10, 650) equals -57244.52
This formula calculates the present value of a loan with an interest rate of 6.5% (per year, thus the division by 12), a term of 10 years (=12*10 months) and an annuity of €650 (per month).
See also: