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.
FUNCTION PRESENT-VALUE (argument-1 {argument-2} ... )
| argument-1 | Must be of the class numeric. The value of argument-1 must be greater than -1. |
| argument-2 | Must be of the 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 increased from one by in increments of one for each term in the series.
COMPUTE RSULT = FUNCTION PRESENT-VALUE (DISCOUNT-RATE, 2000).