PVANNUITY() calculates the present value of a series of payments.
Use PVANNUITY() when you want to determine what a series of future payments is worth now. For example, when you borrow money, the loan amount is the present value to the lender. For more information, see Financial Functions.
PVANNUITY(rate,periods,amount)
| • | rate is the interest rate per period. |
| • | periods is the total number of payment periods in an annuity. |
| • | amount is the payment made at the end of each period and cannot change over the life of the annuity. |
The result is returned to two decimal places.
PVANNUITY() assumes a future value of zero and calculates the result based on payments at the end of the period.
If you enter an obviously invalid parameter such as a negative interest rate, Analyzer returns an error.
At an interest rate of 8% per annum, to calculate the value of receiving $500 a month for the next 20 years, specify:
PVA(0.08/12,12*20,500) = 59,777.15