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DiaGea
DiaGea

Reputation: 99

Present Value Formula using the FV and Payments

In Excel, if I enter =PV(8%/12,12,-1970,0,0) I will get $22,647 The formula for this is:

select  @PAYMENT * (Power((1 + @RATE / 100),@NPER) -1) / (((@RATE / 100)) * Power((1 + @RATE / 100),@NPER))

What would be the formula if I want to add the FV(Future Value)?

Upvotes: 0

Views: 1302

Answers (2)

DiaGea
DiaGea

Reputation: 99

The formula to use to replicate Excel's formula PV(8%/12,12,-1970,456300,0):

select ( @PAYMENT * (Power((1 + @RATE / 100),@NPER) -1) / (((@RATE / 100)) * Power((1 + @RATE / 100),@NPER)) + @FV / Power((1 + @RATE / 100),@NPER) ) * -1

Upvotes: 1

David Browne - Microsoft
David Browne - Microsoft

Reputation: 88996

Wouldn't that just be a compound interest calculation, id FV=CV(R+1)^N? ie:

select @CurrentValue * power(1+@RATE,@NPER)

Upvotes: 0

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