| | | The present value is the total amount that a series of future payments is worth now. |
| | | This function is calculated by iteration and can have zero or more solutions. |
| | | If the successive results of this function do not converge to within 0.0000001 after 20 iterations, then #NUM! is returned. |
| | | If the function does not converge, you should try different values for the "guess". The function will usually converges when the "guess" is between 0 and 1. |
| | | If "pmt" is left blank, then you must include "fv". |
| | | The "pmt" value typically includes principal and interest but no other fees or taxes. |
| | | If "fv" is left blank, then 0 is used. |
| | | If "type" is left blank, then 0 is used. |
| | | If "type" = 0, then payments are made in arrears. |
| | | If "guess" is left blank, then 10% is used. |
| | | The "guess" and "nper" must be expressed in the same units of time: years, months or days. |
| | | If you make annual payments on a four year loan at 12% annual interest, the "guess" should be 12% and the "nper" should be 4. |
| | | If you make monthly payments on a four year loan at 12% annual interest, the "guess" should be 12%/12 and the "nper" should be 4*12. |
| | | Example 1 - What has been the average annual growth rate for an investment of £2,000 is worth £3,000 after 7 years. |
| | | Example 2 - This is checking the answer in Example 1. |
| | | Example 3 - What is my average annual return if I had £10,000 six years ago and after making a deposit of £5,000 at the end of every year I currently have £55,000. |
