**Public Function PresentValue( _
ByVal vRate As Variant _
, ByVal vNPer As Variant _
, ByVal vPmt As Variant _
, Optional ByVal vFV As Variant _
, Optional ByVal vType As Variant _
) As Variant**

**Calculate the Present Value of an annuity based on fixed, periodic, future payments and a fixed interest rate. **

**Example:** What was the amount borrowed in a 7.5% Annual Percentage Rate (APR) four-year auto loan when the payment is $500 per month? Approximately $20,679.19. PresentValue(0.075 / 12, 4 * 12, -500) = 20679.1855679664

See the PresentValueVerify Subroutine for more examples of this function.

**See also:** InterestRate Function
NumberPeriods Function
Payment Function
FutureValue Function
PaymentType Function
PV Function (Visual Basic)
PV Function (Microsoft Excel)

**Summary:** An annuity is a series of fixed payments (all payments are the same amount) made over time. An annuity can be a loan (such as a car loan or a mortgage loan) or an investment (such as a savings account or a certificate of deposit).

**vRate:** Interest rate per period, expressed as a decimal number. The vRate and vNPer arguments must be expressed in corresponding units. If vRate is a monthly interest rate, then the number of periods (vNPer) must be expressed in months. For a mortgage loan at 6% annual percentage rate (APR) with monthly payments, vRate would be 0.06 / 12 or 0.005. Function will return Null if vRate is Null or cannot be interpreted as a number.

**vNPer:** Number of periods. The vRate and vNPer arguments must be expressed in corresponding units. If vRate is a monthly interest rate, then the number of periods (vNPer) must be expressed in months. For a 30-year mortgage loan with monthly payments, vNPer would be 30 * 12 or 360. Function will return Null if vNPer is Null or cannot be interpreted as a number.

**vPmt:** Amount of the payment made each period. Cash paid out is represented by negative numbers and cash received by positive numbers. Function will return Null if vPmt is Null or cannot be interpreted as a number.

**vFV:** Optional future value (cash balance) left after the final payment. Cash paid out is represented by negative numbers and cash received by positive numbers. The future value of a loan will usually be 0 (zero). vFV defaults to 0 (zero) if it is missing or Null or cannot be interpreted as a number.

**vType:** Optional argument that specifies when payments are due. Set to 0 (zero) if payments are due at the end of the period, and set to 1 (one) if payments are due at the beginning of the period. vType defaults to 0 (zero), meaning that payments are due at the end of the period, if it is missing or Null or cannot be interpreted as a number. Function returns Null if vType is not 0 (zero) nor 1 (one).

**Related functions:** Use the NetPresentValue function if the cash flows are the not fixed (they are not all the same amount) throughout the investment. Use the UnevenNetPresentValue function if the cash flows are not fixed (they are not all the same amount) and not periodic (they do not occur at regular intervals).

**v2.0 Addition:** This function is new to this version of Entisoft Tools. Copyright 1996-1999 Entisoft

Entisoft Tools is a trademark of Entisoft.