# PRESENT VALUE Function

The PRESENT VALUE function calculates the present value of a loan or an investment, based on a constant interest rate.

If you know the rate, term, payment, future value and type of a savings scheme or loan you can use the PRESENT VALUE function to work out how much the investment is worth currently (i.e. how much money you need to invest over the same amount of payment periods to equal the return)

 Function name PRESENT VALUE Usage model PRESENT VALUE ( rate:NUM, term:NUM, payment:NUM, future value:NUM, type:NUM ) Parameters This function requires you to replace three of five parameters (two are optional): rate: NUM The function uses this value as the interest rate per payment period. term: NUM The function uses this value as the total number of payment periods. payment: NUM The function uses this value as the paid amount  in each payment period. future value: NUM (Optional) This represents the value after the last payment period, the default is zero. type: NUM (Optional) This value can be entered as a 0 or a 1, 0 meaning payments are due at the end of a payment period and 1 meaning payments are due at the beginning of a payment period. The default is zero. Result A number value.

## Example

For example, if you have an annual rate of 7.5% over 3 years, paying \$100 a month and you know that the future value is \$4,023.1381682 then you can work out the PRESENT VALUE by using the following figures:

SET RateNUM  TO 0.00625 //(0.075/12 to find the monthly rate)
SET TermNUM TO 36 //(amount of months in 3 years)
SET PaymentNUM  TO -100
SET FutureValueNUM TO 4023.1381682
SET TypeNUM TO 0

PRESENT VALUE ( 0.00625, 36, -100, 4023.1381682, 0 )

This produces the result  of the Future Value being 0