PV(rate, nper, pmt, [fv], [type])
=PV(4.5%/12,5*12,-93.22)
The PV function can be used to calculate the present value of a loan. For example, the above formula calculates the present value of a 5-year loan with monthly payments of $93.22 and an annual interest rate of 4.5%. The result of this equation is 5000.26, which is the present value of the loan.
=PV(7%,25,10000)
The PV function can also be used to calculate the present value of an annuity. For example, this calculates the present value of an annuity with an annual interest rate of 7%, paying 10,000 per year over 25 years. The result of this equation is -166,535.832, which is the present value of the annuity.
=PV(7%,25,-10000)
The PV function can also be used to calculate the present value of a negative annuity. This example calculates the present value of an annuity with an annual interest rate of 7%, paying -10,000 per year over 25 years. The result of this equation is 116,535.832, which is the present value of the annuity as a positive value by entering a negative number for the payment.
The PV function is a financial function that calculates the present value of a loan or investment. PV uses a constant interest rate in its calculation. The PV function can be used with periodic or constant payments, and it can also be used with a future value investment goal.