ILE COBOL Language Reference


PRESENT-VALUE

The PRESENT-VALUE function returns a value that approximates the present value of a series of future period-end amounts specified by argument-2 at a discount rate specified by argument-1.

The function type is numeric.

Format
 
                                          .------------.
                                          V            |
>>-FUNCTION PRESENT-VALUE--(--argument-1----argument-2-+--)----><
 
 
argument-1
Must be class numeric. Must be greater than -1.
argument-2
Must be class numeric.

The equivalent arithmetic expression for the returned value is:

  1. For one occurrence of argument-2,

    (argument-2 / (1 + argument-1))

  2. For two occurrences of argument-2,

    (argument-21 / (1 + argument-1) + argument-22 / (1 + argument-1)**2)

  3. For n occurrences of argument-2,

    FUNCTION SUM (argument-21 / (1 + argument-1) ... argument-2n / (1 + argument-1)**n)

There is one term for each occurrence of argument-2. The exponent, n, is incremented from one by one for each term in the series.

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