PV returns the present value of an annuity based on periodic and fixed payments

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

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The Rate and NPer arguments must be calculated using payment periods expressed in the same units. For example, if Rate is calculated using months, NPer must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

present value

Rate

The interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.

NPer

The total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has 4 x 12 (or 48) payment periods.

Pmt

The payment to be made each period. Payments usually contain principal and interest that does not change during the life of the annuity.

FV

The future value or cash balance you want after you make the final payment. For example, the future value of a loan is $0 because that is its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, then $50,000 is the future value. The default ist 0.

Due

Due date specifies when payments are due.
This argument must be either *End of Period* if payments are due at the end of the payment period,
or *Begin of Period *
if payments are due at the beginning of the period.

With the "*RedCrab Calculator*" use the "*PV*" function for the
calculation of the payment for an annuity.

PV(0.005,10,-200)= 1946.08