Difference between revisions of "PresentValue Command"

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:{{example| 1=<div><code><nowiki>PresentValue[ 12%/12, 4*12, -100, 5000, 0 ]</nowiki></code> yields a present value of 696.06. </div> <div><code><nowiki>PresentValue[ 12%/12, 4*12, -100, 5000, 1 ]</nowiki></code> yields a present value of 734.07. </div> {{note|1=Make sure that you are consistent about the units you use for <code><nowiki><Rate></nowiki></code> and <code><nowiki><Number of Periods></nowiki></code>. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for number of payments.}}}}  
 
:{{example| 1=<div><code><nowiki>PresentValue[ 12%/12, 4*12, -100, 5000, 0 ]</nowiki></code> yields a present value of 696.06. </div> <div><code><nowiki>PresentValue[ 12%/12, 4*12, -100, 5000, 1 ]</nowiki></code> yields a present value of 734.07. </div> {{note|1=Make sure that you are consistent about the units you use for <code><nowiki><Rate></nowiki></code> and <code><nowiki><Number of Periods></nowiki></code>. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for number of payments.}}}}  
{{note|1=For all arguments, cash paid out is represented by negative numbers and cash received by positive numbers..}}
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{{note|1=For all arguments, cash paid out is represented by negative numbers and cash received by positive numbers.}}
  
 
{{note| 1=See also [[Payment Command|Payment]], [[Periods Command|Periods]], [[Rate Command|Rate]] and [[FutureValue Command|Future Value]] commands.}}
 
{{note| 1=See also [[Payment Command|Payment]], [[Periods Command|Periods]], [[Rate Command|Rate]] and [[FutureValue Command|Future Value]] commands.}}

Revision as of 11:24, 13 August 2014



PresentValue[ <Rate>, <Number of Periods>, <Payment>, <Future Value (optional)>, <Type (optional)> ]
Returns the total amount of payments of an investment.
  • <Rate> Interest rate per period.
  • <Number of Periods> Total number of payments for the loan.
  • <Payment> The amount paid in each period.
  • <Future Value (optional)> A cash balance you want to attain after the last payment. If you do not enter a future value, it is assumed to be 0.
  • <Type (optional)> Indicates when payments are due. If you do not enter a value or you enter 0 the payment is due at the end of the period and if you enter 1 at the beginning.
Example:
PresentValue[ 12%/12, 4*12, -100, 5000, 0 ] yields a present value of 696.06.
PresentValue[ 12%/12, 4*12, -100, 5000, 1 ] yields a present value of 734.07.
Note: Make sure that you are consistent about the units you use for <Rate> and <Number of Periods>. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for number of payments.
Note: For all arguments, cash paid out is represented by negative numbers and cash received by positive numbers.
Note: See also Payment, Periods, Rate and Future Value commands.
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