PVCO

PVCO calculates the present value of a certain-only annuity based on the assumption for interest.

Syntax

PVCO (InterestRate, YearsCertain, [Frequency], [COLA], [AnnTiming])

Note:

This is the same as Excel’s native PV function: PV(rate, nper, pmt, [fv], [type]).

To illustrate, in the following examples of an 𝑛-year certain only annuity at 𝑖%, EAC’s PVCO function matches Excel’s PV function:

EAC Tools

Excel

1 per year paid annually, at the beginning of the year:

1 per year paid monthly, at the beginning of the month:

Parameter Name

Description

InterestRate

The interest rate(s) to discount future payments to calculate the present value. May be a number, a percentage, a text string, a named range, or reference to a range.

· Rates can be defined using these interest definitions.

· Note: A value that is greater than 25% (i.e. 0.25) will be divided by 100; e.g. if you enter 2.75 it will be treated as .0275 or 2.75%.

YearsCertain

Number of years guaranteed payments. May be an integer, or a factional amount (e.g. years & months).
Optional, default = 0

Frequency

Number of payments per year:
Optional, default = 12

Frequency	Description
1	annual
2	semi-annual
4	quarterly
6	bi-monthly
12	monthly
99	continuous

COLA

Periodic cost-of-living adjustment applied to the benefit amount.
Optional, default = 0
Rates can be defined using these COLA definitions.

AnnTiming

Defines when the payments are made in the period.
Optional, default = 0.

AnnTiming	Description
0	beginning of period
1	end of period
0 to 1	fraction of period, e.g. .5 means paid in middle of the period