PV:
Returns the present value of an investment
The PV function calculates the present value of an investment.
PV takes
3 required arguments and
2 optional arguments:
Syntax: PV(rate,
nper,
pmt,
[fv],
[type])
Using the PV function with only the required arguments:
Using the PV function with the optional arguments:
The arguments for the PV function are:
Argument

Required?

Description

rate 
Required 
The interest rate per period. 
nper 
Required 
The total number of payment periods in an annuity. 
pmt 
Required 
The payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument. 
fv 
Optional 
The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (the future value of a loan, for example, is 0). 
type 
Optional 
The number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0: 
Possible type argument values:
• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a 5year loan at 10 percent annual interest, use 10%/12 for rate and 5*12 for nper. If you make annual payments on the same loan, use 10% for rate and 5 for nper. 
• For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers. 
The PV function calculates the present value of an investment.