PV, one of the money related capacities, ascertains the present estimation of an advance or a venture, in view of a consistent financing cost. You can utilize PV with either intermittent, consistent installments, (for example, a home loan or other advance), or a future esteem that is your speculation objective.

Utilize the Excel Formula Coach to locate the present worth (advance sum) you can manage, taking into account a set regularly scheduled installment. In the meantime, you'll figure out how to utilize the PV capacity in a recipe.

Then again, utilize the Excel Formula Coach to locate the present estimation of your money related speculation objective.

The punctuation of the capacity is:

PV( rate, nper, [pmt], [fv], [type] )

Where the contentions are as per the following:

rate - The financing cost, per period.

nper - The number of periods for the lifetime of the annuity or speculation.

[pmt] -

A discretionary contention that determines the installment per period.

On the off chance that the [pmt] contention is discarded, the [fv] contention must be supplied.

[fv] -

A discretionary contention that indicates the future estimation of the annuity, toward the end of nper installments.

On the off chance that the [fv] contention is discarded, it tackles the default esteem 0.

[type] -

A discretionary contention that characterizes whether the installment is made toward the begin or the end of the period.

The [type] contention can have the worth 0 or 1, which means:

0 - the installment is made toward the end of the period;

1 - the installment is made toward the begin of the period.

In the event that the [type] contention is discarded, it tackles the default estimation of 0 (signifying installments made toward the end of the period).

Please find the file attached below which has the details of the PMT financial function

Attached Files

PMT Financial Functionality in Excel.doc (45.5 KB, 85 views)