Access tutorial 10.13 add content 10: PV Functions

PV (rate, nper, pmt [, fv [, type]) returns the current value of an annuities specified by Double for future scheduled, fixed payment, and fixed interest rates. Rate is required. Double specifies the interest rate for each period. For example, if there is a loan for a car loan with a yearly percentage (APR) of 10 percent and a monthly payment, the interest rate for each phase is 0.112 or 0.0083.

PV (rate, nper, pmt [, fv [, type]) returns the current value of an annuities specified by Double for future scheduled, fixed payment, and fixed interest rates. Rate is required. Double specifies the interest rate for each period. For example, if there is a loan for a car loan with a yearly percentage (APR) of 10 percent and a monthly payment, the interest rate for each phase is 0.1/12 or 0.0083.

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

Returns the current value of an annuities with a fixed interest rate specified by Double for future scheduled and fixed payment.

Rate is required. Double specifies the interest rate for each period. For example, if there is a loan for a car loan with an annual percentage (APR) of 10 percent and a monthly payment, the interest rate for each phase is 0.1/12 or 0.0083.

Nper is required. Integer specifies the total number of payment periods for an annuity. For example, if you choose to pay by month for a four-year car loan, there will be 4*12 (or 48) payment periods.

Pmt is required. Double specifies the payment amount for each period. The payment amount usually includes the principal and interest, and the payment amount remains the same during the active period of the annuity.

Fv is optional. Variant: Specifies the future value or cash deposit you want after you pay off the loan. For example, the future value of a loan is 0 USD after the loan is paid. However, if you want to save $50,000 for the past 18 years as the Children's Education Fund, then $50,000 will be worth the future. If omitted, the default value is 0.

Type is optional. Variant specifies the loan expiration time. If the loan expires at the end of the loan cycle, use 0. If the loan expires at the beginning of the cycle, use 1. If omitted, the default value is 0.

Note: annuities are a series of fixed cash payments within a period of time. An annuity can be a loan (such as a mortgage loan) or an investment (such as a monthly savings plan ). The rate and nper parameters must be calculated in the same unit during the payment period. For example, if rate is calculated by month, nper must also be calculated by month. For all parameters, cash expenditure (such as savings and deposits) is expressed by a negative number, while cash income (such as dividend check) is expressed by a positive number.