Present value of annuity receipts and (optional) final lump sum receipt.

Syntax: @pv(r, n, x[, v, bf])

r: number

n: integer

x: number

v: (optional) number

bf: (optional) number

Return: number

Compute present value of receipt of an n-period annuity, with receipts x and discount rate r, and optional receipt of a final lump sum v.

If n is not an integer, the integer floor will be used.

A non-zero value for the optional bf indicates that the receipts are made at the beginning of periods (annuity due) instead of ends (ordinary annuity).

• The present value of by n-periods of ordinary annuity receipts and a final lump sum is:

• The present value of n-periods of annuity due receipts and a final lump sum is:

Examples

= @pv(0.05, 15, 100)

returns the value 1037.966, indicating that a 15-period annuity that pays $100 per period has a present value of $1037.97 assuming the discount rate of 5%.

Cross-references