Android Question Present Value function

[Carthalion]

I know that I am not supposed to put code here, but I can't remember where else to put it.

It seems that this function should work to find present value, based on a rate, number of payments and monthly payment.

Sub Pv(Rate As Double, Nper As Double, Pmt As Double) As Double
Return Pmt * Power(Rate + 1, Nper) * Rate / (1 - Power(Rate + 1, Nper))
End Sub

When I run this code, I get an answer of 2.01 or so. It should be more like 50,000

PresentValue = Pv(.04/12, 360, -1000)

Please tell me where I am messing up, in addition to putting the code in the body of the thread. I will work on code placement...

 

[Mahares]

I think your code should be:

Sub Pv(Rate As Double, Nper As Double, Pmt As Double) As Double
    Return Pmt/Rate* (1-Power(1+Rate,-Nper))  
End Sub

Log("PV: " & Pv(.04/12, 360, 1000) )  'displays: 209461.24

 

[Carthalion]

That works!

TY

 

[mberthe]

The formula in access is: Pv(Rate,Nper,Pmt,fv,t)
where : fv: future value (for a loan fv=0)
t =0 if payments at the end of the payments period
t =1 if payments at the beginning of the payments period

the code is:

sub pv(rate as double,nper as double,pmt as double,fv as double,t as int) as double
if (t<>0 and t<>1) then return 0
r1= power (1+rate,-nper)
return pmt*(1+rate*t)*(1-r1)/rate-fv*r1
end sub

if fv=0 and t=0 the result is 209461.24