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PV Function


This standard VB function returns the present value of a constant periodic stream of cash flows as in an annuity or a loan.

Syntax

PV(rate, nper, pmt, fv, due)

Argument
Description
rate
The interest rate per period
nper
The total number of payment periods
pmt
The constant periodic payment per period
fv
The future value of the final lump sum amount required (as with a savings plan) or paid (0 as with a loan)
due
0 if due at the end of each period
1 if due at the beginning of each period

Returns

The present value of a constant periodic stream of cash flows.

Usage

Rate is assumed constant over the life of the annuity. If payments are on a monthly schedule, then rate is 0.0075 if the annual percentage rate on the annuity or loan is 9%.

Example

This example finds the present value of a 10-year $25,000 annuity that pays $1,000 a year at 9.5%.

Sub Button_Click
   Dim aprate As Integer, periods As Integer
   Dim payment As Double, annuityfv As Double
   Dim due As Integer, presentvalue As Double
   Dim msgtext
   aprate = 9.5
   periods = 120
   payment = 1000
   annuityfv = 25000
      ' Assume payments are made at end of month
   due = 0
   presentvalue = PV(aprate/12,periods,-payment, annuityfv,due)
   msgtext = "The present value for a 10-year $25,000 annuity @ 9.5%"
   msgtext = msgtext & " with a periodic payment of $1,000 is: "
      msgtext = msgtext & Format(presentvalue, "Currency")
End Sub

See Also

FV Function
IPmt Function
IRR Function
NPV Function
Pmt Function
PPmt Function
Rate Function


 Siebel VB Language Reference
 Published: 18 June 2003