#### PV

##### PV(rate, periods, payment, futureMoney, type)

Returns a number specifying the present value of an annuity based on periodic, fixed payments to be paid in the future and at a fixed interest rate.

Overloads

- PV (rate, periods, payment)
- PV (rate, periods, payment, futureMoney)
- PV (rate, periods, payment, futureMoney, type)

Parameters

- rate - A Number that specifies the interest rate per period.
- periods - A positive Number that specifies the total number of payment periods in the annuity. The units used for specifying rate and periods must be consistent. For example, if periods is the number of periods in months, rate will then be a monthly interest rate.
- payment - A Number or Currency that specifies payment to be made each period.
- futureMoney - an optional Number or Currency that specifies the future value or cash balance you want after you've made the final payment. If omitted, 0 will be used.
- type - An optional Number that specifies when payments are due. Specify 0 if payments are due at the end of the payment period, and 1 if payments are due at the beginning of the period. If omitted, 0 will be used.

Return value

Number value.

Example

Suppose that you want to buy a condo and can make payments of $1100 twice a month (24 annual payments). If the mortgage rates are 6.5 percent, and you want to pay off the condo in 10 years, what is the maximum loan that you can take out?

`PV(0.065 / 24, 10 * 24, -1100)` - Returns 193936 (rounded to the nearest dollar).

You can therefore afford a loan of about $194,000. Notice that the payment argument is negative since you are paying out the money each month.