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:
- For one occurrence of argument-2,
(argument-2 / (1 + argument-1))
- For two occurrences of argument-2,
(argument-21 / (1 + argument-1) + argument-22 / (1 + argument-1)**2)
- 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.
