PRESENT-VALUE - Present value (period-end amount)

The PRESENT-VALUE function returns the principal amount repaid by a series of deferred payments. The deferred payments are given in argument-2; the interest rate at which the payments are calculated is specified in argument-1.
The type of this function is numeric.

Format

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FUNCTION PRESENT-VALUE (argument-1 {argument-2}...)

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Arguments

1. argument-1 and argument-2 must be class "numeric".

2. The value of argument-1 must be greater than -1.

Returned values

1. The returned value is the approximation of a summation of a series of calculations with each term in the following form:

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

   The exponent n is incremented from one by one for each term in the series.

2. The error default value is - 9’999’999’999’999’999’999’999’999’999’999.

See also:        ANNUITY

Example 9-36

 ...
 DATA DIVISION.
 WORKING-STORAGE SECTION.
*** Interest rate 10% **********
 01  INTEREST PIC 9V99 VALUE 0.10.
*** Four payments *********
01  B-1 PIC 9(4) VALUE 1000.
01  B-2 PIC 9(4) VALUE 2000.
01  B-3 PIC 9(4) VALUE 1000.
01  B-4 PIC 9(4) VALUE 1000.
*** Principal amount repaid ***
 01  PAR PIC 9(6).
 PROCEDURE DIVISION.
 P1 SECTION.
 MAIN.
     COMPUTE PAR = FUNCTION PRESENT-VALUE (INTEREST B-1 B-2 B-3 B-4).
     DISPLAY "Amount repaid: " PAR UPON T.
     STOP RUN. 

Result:               Amount repaid: 003996
                          This is the principal amount repaid by 4 payments.