How To Use Excel Pv Function

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How to use excel pv function. We use the excel pv function to get the present value of an investment. You can use pv with either periodic constant payments such as a mortgage or other loan or a future value that s your investment goal. To use the pv excel worksheet function select a cell and type. Pv in excel function example 2 suppose you make quarterly payments of rs 1 25 000 per period for five years having an interest rate per annum of 7. The pv function can also be used in vba code in microsoft excel.

Use the excel formula coach to find the present value loan amount you can afford based on a set monthly payment. By this we can calculate the amount of loan required to purchase anything or the present value of the asset when we have taken the loan. Pv function in excel. The interest rate per period will be counted as 7 4 12 quarterly. When calculating the present value three assumptions are made.

Let s look at some excel pv function examples and explore how to use the pv function in excel vba code. At the same time you ll learn how to use the pv function in a formula. Dim lvalue as currency lvalue pv 0 0525 1 10 1 100 0 in this example the variable called lvalue would now contain the value of 762 88. The microsoft excel pv function returns the present value of an investment based on an interest rate and a constant payment schedule. How to use the pv function in excel.

Pv function overview the pv function calculates the present value. The pv function excel will be given as rate 7 4 12 nper 4 5 pmt 125000. Pv function in excel table of contents pv function in excel. This is a complete financial formula which will not be seen in any operation calculations. The excel pv function is a financial function that returns the present value of an investment.

Pv function also expands as present value which is quite a useful function available under a financial category in excel it is used for finding out the present value at any point of the time period of borrowed or invested amount and considering the rate. Notice how the formula inputs appear. Rate required argument the interest rate per compounding period. The present value is the value in today s dollars of a series of payments to be made in future. When the above formula is applied to a set of data it will return the present value.