# Financial.PV(Double, Double, Double, Double, DueDate) Method

## Definition

Returns a value specifying the present value of an annuity based on periodic, fixed payments to be paid in the future and a fixed interest rate.

public static double PV (double Rate, double NPer, double Pmt, double FV = 0, Microsoft.VisualBasic.DueDate Due = Microsoft.VisualBasic.DueDate.EndOfPeriod);
static member PV : double * double * double * double * Microsoft.VisualBasic.DueDate -> double
Public Function PV (Rate As Double, NPer As Double, Pmt As Double, Optional FV As Double = 0, Optional Due As DueDate = Microsoft.VisualBasic.DueDate.EndOfPeriod) As Double

#### Parameters

Rate
Double

Required. The interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.

NPer
Double

Required. The total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has 4 x 12 (or 48) payment periods.

Pmt
Double

Required. The payment to be made each period. Payments usually contain principal and interest that does not change during the life of the annuity.

FV
Double

Optional. The future value or cash balance you want after you make the final payment. For example, the future value of a loan is $0 because that is its value after the final payment. However, if you want to save$50,000 over 18 years for your child's education, then $50,000 is the future value. If omitted, 0 is assumed. Due DueDate Optional. Object of type DueDate that specifies when payments are due. This argument must be either DueDate.EndOfPeriod if payments are due at the end of the payment period, or DueDate.BegOfPeriod if payments are due at the beginning of the period. If omitted, DueDate.EndOfPeriod is assumed. #### Returns The present value of an annuity based on periodic, fixed payments to be paid in the future and a fixed interest rate. ## Examples In this example, the PV function returns the present value of an$1,000,000 annuity that will provide \$50,000 a year for the next 20 years. Provided are the expected annual percentage rate (APR), the total number of payments (TotPmts), the amount of each payment (YrIncome), the total future value of the investment (FVal), and a number that indicates whether each payment is made at the beginning or end of the payment period (PayType). Note that YrIncome is a negative number because it represents cash paid out from the annuity each year.

Sub TestPV()
' Define money format.
Dim Fmt As String = "###,##0.00"
' Annual percentage rate.
Dim APR As Double = 0.0825
' Total number of payments.
Dim TotPmts As Double = 20
' Yearly income.
Dim YrIncome As Double = 50000
' Future value.
Dim FVal As Double = 1000000
' Payment at beginning of month.
Dim PayType As DueDate = DueDate.BegOfPeriod
Dim PVal As Double = PV(APR, TotPmts, -YrIncome, FVal, PayType)
MsgBox("The present value is " & Format(PVal, Fmt) & ".")
End Sub


## Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The Rate and NPer arguments must be calculated using payment periods expressed in the same units. For example, if Rate is calculated using months, NPer must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.