SQL Server PV Function

Updated 2023-10-06 23:18:40.860000

Description

Use the scalar function PV to calculate the present value of an investment.

Syntax

SELECT [westclintech].[wct].[PV] (
  <@Rate, float,>
 ,<@Nper, float,>
 ,<@Pmt, float,>
 ,<@FV, float,>
 ,<@Pay_type, int,>)

Arguments

@Rate

the interest rate per period. @Rate is an expression of type float or of a type that can be implicitly converted to float.

@Nper

the total number of periods in the annuity to be calculated. @Nper is an expression of type float or of a type that can be implicitly converted to float.

@Pmt

the payment made each period. @Pmt cannot change over the life of the annuity. @Pmt is an expression of type float or of a type that can be implicitly converted to float.

@FV

the future value at the end of the annuity. @FV is an expression of type float or of a type that can be implicitly converted to float.

@Pay_type

the number 0 or 1 and indicates when payments are due. @Pay_type is an expression of type int or of a type that can be implicitly converted to int. If @Pay_type is NULL it is assumed to be 0.

Set @Pay_type equal to	If payments are due
0	At the end of a period
1	At the beginning of a period

Return Type

float

Remarks

PV performs the following calculation:

PV = (( @Pmt * k) / @Rate ) - @FV

PV = PV / ((1 + @Rate ) ^ @Nper )

PV = PV - ( @Pmt * k) / @Rate

If @Pay_type = 0 Then k = 1 Else k = 1 + @Rate

Examples

SELECT wct.PV(0.08 / 12e+00, 20 * 12, 500, 0, 0);

Here is the result set.

column 1
-59777.1458511878