PRESENT_VALUE

Annuity investment's present value

Description

Calculates an annuity investment's present value. This is done based on a constant interest rate and periodic payments of constant amounts.

Function signature

PRESENT_VALUE(rate: Number, periods: Number, paymentamount: Number, futurevalue: Number, paymentsatthebeginningofperiod: Boolean) => Number

Parameter

Description

Rate

The interest rate

Periods

The number of payments to be made

Payment amount

The amount per period to be paid

Future value

Future value left when the final payment has been completed, defaults to 0.

Payments at the beginning of period

Whether payments are due at the end (false) or beginning (true) of each period

Examples

Formula

Return value

PRESENT_VALUE(0.1, 4, 100)

-316.99

PRESENT_VALUE(0.5, 4, 100)

-160.49

PRESENT_VALUE(0.5, 6, 100)

-182.44

PRESENT_VALUE(0.5, 6, 100, 200)

-200

PRESENT_VALUE(0.5, 6, 100, 200, true)

-291.22