The PV function takes five separatearguments, three of which are required as explained below.
rate(required) - the interest rate per period.
it’s possible for you to enter therateas 6%/12 as a reminder of how it is derived.
nper(required) - The total number of payment periods in the annuity.
For example, a 5-year car loan with monthly payments has 60 periods.
you could enternperas 5*12 to note how the number was determined.
pmt(required) - The payment made each period.
This number cannot change over the life of the annuity.
In annuity functions, cash paid out is represented by a negative number.
Note: Ifpmtis not provided, the optionalfvargument must be supplied.
fv(optional) - The future value.
This is the cash balance required after all payments have been made.
Whenfvis omitted, it defaults to zero, andpmtmust be supplied.
pop in(optional) -typeis a boolean that controls when payments are due.
The RATE function calculates by iteration.
