How To Use Excel Pv Function

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.

How to use excel pv function. 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. The microsoft excel pv function returns the present value of an investment based on an interest rate and a constant payment schedule. When the above formula is applied to a set of data it will return the present value. How to use the pv function in excel.

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. Therefore the rate would be 1. We use the excel pv function to get the present value of an investment. Pv formula in excel. The pv function can also be used in vba code in microsoft excel.

The interest rate per period will be counted as 7 4 12 quarterly. Pv function in excel table of contents pv function in excel. 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 present value is the value in today s dollars of a series of payments to be made in future. The pv function uses the following arguments.

At the same time you ll learn how to use the pv function in a formula. To use the pv excel worksheet function select a cell and type. The pv function excel will be given as rate 7 4 12 nper 4 5 pmt 125000. You can use the pv function to get the value in today s dollars of a series of future payments assuming periodic constant payments and a constant interest rate. Use the excel formula coach to find the present value loan amount you can afford based on a set monthly payment.

When calculating the present value three assumptions are made. Pv function in excel. Notice how the formula inputs appear. Pv formula or present value formula in excel is used for calculating the present value of any loan amount. Visit dose for excel add in website.