PV |
PV(rate, nper, pmt [,fv] [,type]) |
Returns the present value of a series of equal cash flows at regular intervals. |
rate | The fixed interest rate per period. |
nper | The total number of payments. |
pmt | The fixed payment made each period. |
fv | (Optional) The future value (or cash balance) after all the payments. |
type | (Optional) The number indicating when the payments are due: 0 = the end of the period (default) 1 = the start of the period |
REMARKS |
* For an illustrated example refer to the [[Compounding Interest]] page. * This function allows you to calculate the present value of a simple annuity. * A negative number represents any cash you pay out. * A positive number represents any cash you receive (start with or end with). * The "rate" and "nper" MUST be expressed in the same units of time: years, months or days. * The "rate" can be entered with a percentage sign or as a decimal. * The "nper" is the number of compounding periods. * The "pmt" argument typically contains principal and interest but no other fees or taxes. * The "pmt" is the fixed payment made each period. * If "fv" is left blank, then 0 is used. * If "fv" is left blank, then you must include "pmt". * If "pmt" is left blank, then you must include "fv". * If "pmt" is left blank, then 0 is used. * The "type" argument is irrelevant when "pmt" is left blank. * If "type" is left blank, then 0 is used. * If "type" = 0, then payments are made in arrears. * You can use the FV function to return the future value for a series of equal cash flows at regular intervals. * You can use the NPER function to return the number of periods for an investment. * You can use the PMT function to return the full amount (principal + interest) paid every period on a loan with fixed interest. * You can use the RATE function to return the interest rate for a series of equal cash flows at regular intervals. * You can use the NPV function to calculate the net present value of a series of unequal cash flows at regular intervals. * You can use the XNPV function to return the net present value of a series of unequal cash flows at irregular intervals. * The equivalent VBA function is VBA.PV * For the Microsoft documentation refer to support.microsoft.com * For the Google documentation refer to support.google.com |
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1 - What is the present value of receiving £10,000 in 4 years time if the discount rate is 10% (compounded annually) with payments at the end of the period. 2 - What is the present value of receiving £10,000 in 4 years time if the discount rate is 10% (compounded annually) with payments at the end of the period. 3 - What is the present value of receiving £10,000 in 4 years time if the discount rate is 10% (compounded annually) with payments at the start of the period. The fixed payment is zero so the "type" argument makes no difference. 4 - This is checking the answer in 1,2 and 3. 5 - What is the present value of receiving £10,000 in 4 years time if the annual discount rate is 10% (compounded monthly). 6 - This is checking the answer is 3. 7 - What would my original amount have been if I have £10,000 in my account now and the annual growth rate was 5.6% over the past 2 years (compounded annually). 8 - What would my original amount have been if I have £10,000 in my account now and the annual growth rate was 1% a month over the past 2 years (compounded annually). 9 - How much would my deposit have to be if I wanted to have saved £500,000 after 20 years if I save £1,500 at the end of every month with an annual growth rate of 4.5%. 10 - What is the price of a 10 year bond with a par value of £100 and a coupon of 10% paid annually. Lets assume the discount rate is 12%. The result is negative as this is how much you will have to pay. 11 - What is the price of a 10 year bond with a par value of £100 and a coupon of 10% paid semi annually. Lets assume the discount rate is 12%. 12 - What is the price of a 10 year bond with a par value of £100 and a coupon of 10% paid monthly. |
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