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SQL SERVER – Present value of Annuity(PV)

In my last article, I shared how to calculate Future Value of Annuity(FV) function in SQL Server and as promised in this article, today I will be sharing about Present Value of Annuity(PV) function in SQL Server, another important financial function.

Given below is the script of Present Value of Annuity function in SQL with examples :

```CREATE FUNCTION UDF_PresentValue
(@InterestRate NUMERIC(18,8), --Rate is the interest rate per period.
@Nper          INT,           --Nper is the total number of payment
--periods in an annuity.
@Pmt           NUMERIC(18,4), --Pmt is the payment made each period;
--it cannot change over the life
--of the annuity.PaymentValue must be
--entered as a negative number.
@Fv            NUMERIC(18,4), --Fv is the future value, or the lump-sum
--amount that a series of future payments
--is worth right now. If Fv is omitted,
--it is assumed to be 0 (zero).
--FV must be entered as a negative number.
@Type		   BIT            --Type is the number 0 or 1 and indicates
--when payments are due.
--If type is omitted, it is assumed to be 0
-- which represents at the end of the period.
--If payments are due at the beginning
--of the period, type should be 1.
)
RETURNS NUMERIC(18,2) --float
AS
BEGIN
DECLARE  @Value NUMERIC(18,2)
SELECT @Value =
Case WHEN @Type=0
THEN @Pmt*(Power(Convert(float,(1 + @InterestRate / 100)),@Nper)
-1) /(((@InterestRate / 100))
* Power((Convert(float,1 + @InterestRate / 100)),@Nper))
+ @Fv *
Power(Convert(float,(1 + @InterestRate / 100)),@Nper)

WHEN @Type=1
THEN @Pmt*(Power(Convert(float,(1 + @InterestRate / 100)),@Nper)
-1) /(((@InterestRate / 100))
* Power((Convert(float,1 + @InterestRate / 100)),@Nper))
* (1 + @InterestRate / 100)
+ @Fv
* Power(Convert(float,(1 + @InterestRate / 100)),@Nper)
END
RETURN @Value*-1
END
GO
--Syntax
--dbo.UDF_PresentValue(@InterestRate,@Nper,@Pmt,@Fv ,@Type)
--You can find the same syntax in excel.
--PV(Rate,Nper,Pmt,Fv ,Type)

SELECT dbo.UDF_PresentValue(0.625,24,250,0,0)
---5555.61						--SQL OUTPUT
--=PV(7.5%/12, 2*12, 250,0, 0)	--EXCEL FORMULA
--(\$5,555.61)					--EXCEL OUTPUT
GO

SELECT dbo.UDF_PresentValue(0.1153846,208,50,0,1)
---9252.07						--SQL OUTPUT
--==PV(6%/52, 4*52, 50, , 1)	--EXCEL FORMULA
--(\$9,252.07)					--EXCEL OUTPUT
GO
SELECT dbo.UDF_PresentValue(5.25,10,100,0,0)
---762.88						--SQL OUTPUT
--=PV(5.25%/1, 10*1, 100, , 0)	--EXCEL FORMULA
--(\$762.88)					    --EXCEL OUTPUT
GO
```