Language Reference Guide : Functions : Finance Library Functions : PV Function
 
Share this page          
PV Function
The PV function calculates the present value of an annuity of a specified periodic payment, earning a given interest rate, over the total number of periods in its life. It uses the same formula as the FV (future value) function (see FV Function).
Note:  Paybegin is either 1 or 0, indicating that the payment is made at the beginning or end of the period.
This function has the following syntax:
PV(pmt = value, i = value, nper = value [, fv = value, paybegin])
Arguments
Data Type
Description
pmt
Float
Periodic payment
i
Float
Interest per period
nper
Float
Number of periods
fv
Float
Future value
Default: 0
paybegin
Integer
1 = beginning of period
0 = end of period
Default: 0
This function returns:
• Float—The present value of periodic payments (pmt) at the specified interest rate (i) or a lump sum deposit (pv) at same specified interest rate over a specified number of periods (nper)
• Null—On error
Example—PV function:
/*  You are thinking about buying an insurance annuity
**  which pays $400 per month for next 20 years. You
**  expect to earn 8% per year on the payments. The
**  annuity costs $50,000. Is it a good deal?
**  Calculate the Present Value and compare to cost of
**  annuity.
*/
PresentValue = pv(pmt = 400,
    i = .08/12,
    nper = 12*20);
/*  Note that PresentValue is negative indicating a
**  cash outflow
*/
if abs(PresentValue) < 50000 then
    message 'Not such a good deal';
endif;