Difference between revisions of "Manuals/calci/PV"

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(Created page with "<div id="6SpaceContent" class="zcontent" align="left"> '''PV'''(Rate, NoPaymentPeriods, Payments, FutureValue, Type) where, '''Rate''' - is the interest rate per per...")
 
 
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<div id="6SpaceContent" class="zcontent" align="left">
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<div style="font-size:30px">'''PV (Rate,NoPaymentPeriods,Payment,FutureValue,Type)'''</div><br/>
  
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'''PV'''(Rate, NoPaymentPeriods, Payments, FutureValue, Type)
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*<math>Rate</math>  is the interest rate.
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*<math>NoPaymentPeriods</math> is the total number of payment periods.
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*<math>Payment</math> is the amount of the payment made each period.
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*<math>FutureValue</math> is the future value.
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*<math>Type</math> is the type.
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**PV(), returns the present value of an investment.
  
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where,
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==Description==
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*This function gives the present value for an investment.
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'''Rate''' - is the interest rate per period.
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*It is  based on an interest rate and a constant payment schedule.
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*This function calculates the present value of an investment, which is the total amount that a series of future payments is worth presently.
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'''NoPaymentPeriods''' - is the total number of payment periods
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*In <math>PV (Rate,NoPaymentPeriods,Payment,FutureValue,Type)</math>,<math>Rate</math> is the rate of interest for the period.
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*Suppose we are taking  a loan for 8 percent annual interest rate and paying the amount in monthly, then the <math>Rate</math> value is 8%/12.
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'''Payments''' - the payment made each period, it not change over the life of the annnuity.Payment contains principal and interest but except other fees and taxes.If omitted, include PresentValue parameters.
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*So we have to enter the <math>Rate</math> value as  8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
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*<math>NoPaymentPeriods</math> is the total number of payment periods in an annuity.
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'''FutureValue''' - the future value.If omitted assumed to be 0 and include Payments parameters.
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*<math>Payment</math>  is the payment made each period in the annuity.
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*Normally, the payment is set over the life of the annuity and includes principal plus interest without any other fees.
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'''Type''' - is indicates payments due by number  0 or 1
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*<math>FutureValue</math> is the future value of an investment or loan (the value you want to achieve at the end of all periods) when we are omitting the value of <math>FutureValue</math> ,then it is assumed to be 0.  
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*<math>Type</math> is the number 0 or 1 which is specifies the time to make a payment during the period.
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'''TYPE          Payments due'''
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*when we are not giving the value of <math>Type</math>, then it is assumed to be 0.
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{| class="wikitable"
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|-
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! Type value
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! Explanation
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|-
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| 0
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| Payments are due at the end of the period
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|-
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| 1
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|Payments are due at the beginning of the period
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|}
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* The present value can be calculated using the following formula:
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<math>PV=\frac{FV*1}{(1+r)^n}</math>
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*where <math>FV</math> is the future value, <math>r</math> is the rate of interest, <math>n</math> is the number of periods.
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*Also the result is coming in a negative sign ,it is indicating the money that we would pay, an outgoing cash flow.
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*The interest rate is dividing by 12 to get a monthly rate.
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*The years the money is paid out is multiplied by 12 to get the number of payments.
  
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0              At the end of the period
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==Examples==
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#=PV(9.2%/12,15*12,10000,0) =-974470.2640587
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#=PV(5%/12,25*12,25000,0) = -4276501.176022
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#=PV(5%/12,25*12,25000,1) = -4276501.46327
  
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1              At the beginning of the period
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==Related Videos==
  
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</div>
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{{#ev:youtube|ykG7V63YM4E|280|center|PV}}
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----
 
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<div id="1SpaceContent" class="zcontent" align="left">
 
  
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Returns the present vlaue of an investment.
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==See Also==
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*[[Manuals/calci/FV  | FV ]]
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*[[Manuals/calci/IPMT  | IPMT ]]
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*[[Manuals/calci/PPMT  | PPMT ]]
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*[[Manuals/calci/NPER  | NPER ]]
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*[[Manuals/calci/PMT  | PMT ]]
  
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</div>
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==References==
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----
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*[https://wiki.openoffice.org/wiki/Documentation/How_Tos/Calc:_PV_function Pv]
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<div id="7SpaceContent" class="zcontent" align="left">If Type other than 0 or 1, PV returns the #ERROR.</div>
 
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----
 
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<div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left">
 
  
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PV
 
  
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</div></div>
 
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----
 
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<div id="8SpaceContent" class="zcontent" align="left">
 
  
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Lets see an example in (Column1, Row6)
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*[[Z_API_Functions | List of Main Z Functions]]
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<nowiki>=PV(0.02/12,12*R3C1,R1C1,R4C1,R5C1)</nowiki>
 
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PV returns -1245262.336586.
 
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Consider an another example(Column1, Row2)
 
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<nowiki>=PV(0.02/12,12*5,4500,0,3)</nowiki>
 
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PV returns #ERROR(Type other than 0 or 1).
 
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</div>
 
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----
 
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<div id="10SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Syntax </div><div class="ZEditBox"><center></center></div></div>
 
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----
 
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<div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
 
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<div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
 
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<div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
 
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<div id="2SpaceContent" class="zcontent" align="left">
 
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{| id="TABLE3" class="SpreadSheet blue"
 
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|- class="even"
 
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| class=" " |
 
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| Column1
 
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| class="      SelectTD ChangeBGColor SelectTD" |
 
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<div id="2Space_Handle" class="zhandles" title="Click and Drag to resize CALCI Column/Row/Cell. It is EZ!"></div><div id="2Space_Copy" class="zhandles" title="Click and Drag over to AutoFill other cells."></div><div id="2Space_Drag" class="zhandles" title="Click and Drag to Move/Copy Area.">[[Image:copy-cube.gif]]  </div>Column2
 
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| Column3
 
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| Column4
 
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|- class="odd"
 
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| class=" " | Row1
 
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| class=" " | 8000
 
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|- class="even"
 
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| class="  " | Row2
 
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| class="sshl_f" | 2%
 
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|- class="odd"
 
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| Row3
 
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| class=" " | 15
 
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|- class="even"
 
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| Row4
 
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| class="sshl_f" | 8
 
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|- class="odd"
 
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| class=" " | Row5
 
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| class="sshl_f            " | 1
 
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|- class="even"
 
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| Row6
 
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| class="sshl_f" | -1245262.336586
 
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|}
 
  
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<div align="left">[[Image:calci1.gif]]</div></div>
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*[[ Z3 |  Z3 home ]]
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----
 

Latest revision as of 15:13, 27 July 2018

PV (Rate,NoPaymentPeriods,Payment,FutureValue,Type)


  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Rate} is the interest rate.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NoPaymentPeriods} is the total number of payment periods.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Payment} is the amount of the payment made each period.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} is the future value.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} is the type.
    • PV(), returns the present value of an investment.

Description

  • This function gives the present value for an investment.
  • It is based on an interest rate and a constant payment schedule.
  • This function calculates the present value of an investment, which is the total amount that a series of future payments is worth presently.
  • In Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle PV (Rate,NoPaymentPeriods,Payment,FutureValue,Type)} ,Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Rate} is the rate of interest for the period.
  • Suppose we are taking a loan for 8 percent annual interest rate and paying the amount in monthly, then the Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Rate} value is 8%/12.
  • So we have to enter the Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Rate} value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NoPaymentPeriods} is the total number of payment periods in an annuity.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Payment} is the payment made each period in the annuity.
  • Normally, the payment is set over the life of the annuity and includes principal plus interest without any other fees.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} is the future value of an investment or loan (the value you want to achieve at the end of all periods) when we are omitting the value of Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FutureValue} ,then it is assumed to be 0.
  • Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} is the number 0 or 1 which is specifies the time to make a payment during the period.
  • when we are not giving the value of Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Type} , then it is assumed to be 0.
Type value Explanation
0 Payments are due at the end of the period
1 Payments are due at the beginning of the period
  • The present value can be calculated using the following formula:

Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle PV=\frac{FV*1}{(1+r)^n}}

  • where Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle FV} is the future value, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle r} is the rate of interest, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle n} is the number of periods.
  • Also the result is coming in a negative sign ,it is indicating the money that we would pay, an outgoing cash flow.
  • The interest rate is dividing by 12 to get a monthly rate.
  • The years the money is paid out is multiplied by 12 to get the number of payments.

Examples

  1. =PV(9.2%/12,15*12,10000,0) =-974470.2640587
  2. =PV(5%/12,25*12,25000,0) = -4276501.176022
  3. =PV(5%/12,25*12,25000,1) = -4276501.46327

Related Videos

PV

See Also

References


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