PV

Calculates the present value of an investment based on constant payments and a constant interest rate.

PV(rate, nper, pmt, fv, type)

Parameters

• rate - The interest rate per period.
• nper - The total number of payments.
• pmt - The payment made each period; payments are assumed to be made at the end of each period.
• fv - The future value, or the amount of money that an investment will be worth after all payments have been made. If fv is omitted, it is assumed to be 0. (optional)
• type - The number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0. (optional)

Examples

PV(0.05 /12, 120, -100, 1000)

Result: 8820.97

Note: Calculates the present value of an investment with a series of monthly payments of $1,000, for a total of 10 years (120 months), with a 5% annual interest rate compounded monthly.