optiRum (version 0.40.1)

PV: 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

# NOT RUN {
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
# }