PresentValue

Calculate the present value given the future value of an investment.

Declaration

Source position: math.pp line 623

  function PresentValue(ARate: Float; NPeriods: Integer; APayment: Float; 
                       AFutureValue: Float; APaymentTime: TPaymentTime)
                        : Float;

Description

PresentValue calculates the present (start) value of an investment (PV) in the cash flow formula (see CashFlowFunctions ) The function result is the start value of an investment, when the future value is AFutureValue (FV) and APayment (PMT) is invested for NPeriods (n) at the rate of ARate (q) per period.

The APaymentTime parameter determines whether the investment (payment) is an ordinary annuity or an annuity due: ptEndOfPeriod must be used if payments are at the end of each period. If the payments are at the beginning of the periode, ptStartOfPeriod must be used.

See also