Rational Developer for System z
COBOL for Windows, Version 7.5, 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
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>>-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 returned value is an approximation of the summation of a series of calculations with each term in the following form:

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

There is one term for each occurrence of argument-2. The exponent n is incremented from 1 by 1 for each term in the series.


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