## 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