This function returns the present value of an investment.
PV(rate, nper, pmt [ ,fv [ , type ] ])
Return data type: numeric. The result has a default number format of money. .
The present value is the total amount that a series of future payments is worth right now. For example, when borrowing money, the loan amount is the present value to the lender.
|rate||The interest rate per period.|
|nper||The total number of payment periods in an annuity.|
|The payment made each period. It cannot change over the life of the annuity. A payment is stated as a negative number, for example, -20.|
|The future value, or cash balance, you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0.|
|Should be 0 if payments are due at the end of the period and 1 if payments are due at the beginning of the period. If type is omitted, it is assumed to be 0.|
What is the present value of a debt, when you have to pay $100 at the end of each month during a five-year period, given an interest rate of 7%?