PV Function

PV Function

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Class

Microsoft.VisualBasic.Financial

Syntax

     Dim result As Double = PV(rate, nPer, pmt[, fv [, due]]) 

rate (required; Double)

The interest rate per period.

nPer (required; Double)

The total number of payment periods.

pmt (required; Double)

The payment made in each period.

fv (optional; Double)

The future value or cash balance after the final payment. If omitted, the default value is 0.

due (optional; DueDate enumeration)

A value indicating when payments are due, from the Microsoft.VisualBasic.DueDate enumeration. DueDate.EndOfPeriod indicates that payments are due at the end of the payment period; DueDate.BegOfPeriod indicates that payments are due at the beginning of the period. If omitted, the default value is DueDate.EndOfPeriod.

Description

The PV function calculates the present value of an annuity (either an investment or loan), based on a regular number of future payments of a fixed value and a fixed interest rate. The present value is the current value of a future stream of equal cash-flow events discounted at some fixed interest rate.

Usage at a Glance

• The time units used for the number of payment periods, the rate of interest, and the payment amount must be the same. If you state the payment period in months, you must also express the interest rate as a monthly rate and the amount paid as a per-month payment.

• Payments made against a loan or added to the value of savings are expressed as negative numbers.

• The rate is supplied as a decimal percent. For example, 10% is stated as 0.1. If you are calculating using monthly periods, you must also divide the annual rate by 12. For example, 10% per annum equates to a rate per period of .00833.

See Also

FV Function, IPmt Function, NPer Function, NPV Function, Pmt Function, PPmt Function, Rate Function