Calculates the present value (PV) of an investment, which is the current value of a series of future payments, based on a specific periodic interest rate over a given number of periods for a given payment amount.
Format: PV (rate, nper, pmt {,fv {,type})
Arguments:
ΓÇó rate: Interest rate per period.
ΓÇó nper: Number of periods.
ΓÇó pmt: Payment to be made per period.
ΓÇó fv: Optional. Future value of the investment or cash value remaining after final payment. If omitted, assumed to be 0.
ΓÇó type: Optional. Type of payment scheme. (0 or 1; preset to 0, which means payments are due at the end of the period.)
Example:
PV (10%,5,-100,5000) returns -2725.5279 (using a fixed number format with a precision of 4).
Shows that to accumulate £5,000 in five years, when making payments of £100 at the end of each year, you would have to invest £2,725.53 now, at an interest rate of 10%.