Language Reference Guide > Language Reference Guide > Function Libraries > Finance Library Functions > PV Function
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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).
This function has the following syntax:
PV(pmt = value, i = value, nper = value[, fv = value, paybegin])
Note:  Paybegin is either 1 or 0, indicating that the payment is made at the beginning or end of the period.
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;
Last modified date: 06/25/2024