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<div style="font-size:30px">'''PV(r,np,pmt,fv,ty)'''</div><br/>
*<math>r</math> is the interest rate.
*<math>np</math> is the total number of payment periods.
*<math>pmt</math> is the amount of the payment made each period.
*<math>fv</math> is the future value.
*<math>ty</math> is the type.
==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 <math>PV(r,np,pmt,fv,ty)</math>,<math>r</math> 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 <math>r</math> value is 8%/12.
*So we have to enter the <math>r</math> value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
*<math>np<math> is the total number of payment periods in an annuity.
*<math>pmt</math> 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.
*<math>fv</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>fv</math> ,then it is assumed to be 0.
*<math>ty</math> 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 <math>ty</math>, then it is assumed to be 0.
{| class="wikitable"
|-
! ty 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:
<math>PV=\frac{FV*1}{(1+r)^n}</math>
*where <math>FV</math> is the future value, <math>r</math> is the rate of interest, <math>n</math> 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==
#=PV(9.2%/12,15*12,10000,0) =-974470.2640587
#=PV(5%/12,25*12,25000,0) = -4276501.176022
#=PV(5%/12,25*12,25000,1) = -4276501.46327
where ,, , , and
<div id="6SpaceContent" class="zcontent" align="left">
<div id="6SpaceContent" class="zcontent" align="left">
Lets see an example in (Column1, Row6)
Lets see an example in (Column1, Row6)
UNIQ581acce90e066248-nowiki-00000004-QINU
PV returns -1245262.336586.
PV returns -1245262.336586.
Consider an another example(Column1, Row2)
Consider an another example(Column1, Row2)
UNIQ581acce90e066248-nowiki-00000005-QINU
PV returns #ERROR(Type other than 0 or 1).
PV returns #ERROR(Type other than 0 or 1).