PV: Calculates the present value

In optiRum: Financial Functions & More

Calculates the present value

Description

Based on period interest rate, number of periods, and instalment, this function calculates the present value of the loan such that it would be paid off fully at the end of the loan. This function is designed to be equivalent to the Excel function PV. It calculates based on a fixed interest rate, FV=0 and charging is at the end of the period. Response is rounded to 2dp

Usage

PV(rate, nper, pmt, fv = 0)

Arguments

rate	The nominal interest rate per period (should be positive)
nper	Number of periods
pmt	Instalment per period (should be negative)
fv	Future value i.e. redemption amount

Value

pv Present value i.e. loan advance (should be positive)

See Also

PMT RATE

Other finance: APR(), PMT(), RATE()

Examples

PV(0.1,12,-10) # 68.14 Taken from excel

df<-data.frame(rate=c(.1,.1),nper=c(12,24),pmt=c(-10,-15))
PV(df$rate,df$nper,df$pmt)  # c(68.14,134.77) Taken from excel

optiRum documentation built on May 5, 2022, 1:05 a.m.