PV( ) Function

Example   See Also

Returns the present value of an investment.

Syntax

PV(nPayment, nInterestRate, nTotalPayments)

Returns

Numeric

Arguments

nPayment

Specifies the periodic payment amount. nPayment can evaluate to a positive or negative number. PV( ) assumes that the payments are made at the end of each period.

nInterestRate

Specifies the periodic interest rate. If the interest rate of an investment is annual and the payments are made monthly, divide the annual interest rate by 12.

nTotalPayments

Specifies the total number of payments.

Remarks

PV( ) computes the present value of an investment based on a series of equal periodic payments at a constant periodic interest rate.