User Tools

Site Tools


prepv_present_value_with_prepayment_.htm
Navigation:  Templates > Guide to all Templates > Additional Libraries and Templates > Finance Library >====== PREPV (present value with prepayment) ====== Previous pageReturn to chapter overviewNext page

PREPV(periods,rate,payment,futurevalue)

PREPV Computes the present value required to reach a targeted future value.
periods A numeric constant or variable containing the number of periods in which a cash flow occurred.
rate A numeric constant or variable containing the periodic rate of return.
payment A numeric constant or variable containing the periodic payment amount.
futurevalue A numeric constant or variable containing the amount of the desired or targeted future value of the investment.

PREPV determines the present value required today to reach a desired amount (futurevalue) based upon the total number of periods (periods), a periodic interest rate (rate), and a payment amount (payment). If payments occur at the end of each period then use the PV function, which calculates interest accordingly.

Periodic rate may be calculated as follows:

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100)

NOTE.jpg

If the present value is less than the future value (annuities), payments are positive, and conversely, if the present value is greater than the future value (loans), payments are negative.

Return Data Type:     DECIMAL

Internal Formulas:

PREPV.jpg

where frac(periods) is the fractional portion of the periods parameter.

Example:

 PeriodicRate = AnnualRate / (PeriodsPerYear * 100)

 IF TimeOfPayment = 'Beginning of Periods'

  PresentValue = PREPV(TotalPeriods,PeriodicRate,Payment,FutureValue)

 ELSE

  PresentValue = PV(TotalPeriods,PeriodicRate,Payment,FutureValue)

 END

prepv_present_value_with_prepayment_.htm.txt · Last modified: 2021/04/15 15:57 (external edit)