PV in WPS Spreadsheet: Discount Regular Cash Flows to a Present Value
Use WPS present value with explicit cash-flow signs, terminal values and timing, with an independently discounted two-payment example.
Verification status: See the evidence and test scope described in this guide. How formula examples are checked
Quick answer: =PV(0.1,2,-121,0,0) has expected present value 210. Two end-of-period payments of 121 have discounted magnitudes 110 and 100 at a hypothetical 10% rate per period.
Syntax and argument meaning
=PV(rate,nper,pmt,fv,type)
Rate is per period; nper is the number of regular payment periods; pmt is the fixed payment; fv is the terminal value; and type is 0 for end or 1 for beginning. The WPS lesson explicitly gives omitted fv as zero and omitted type as period end. If pmt is omitted, fv must be supplied; if fv is omitted, pmt must be supplied. These examples specify all five arguments.
A positive PV can represent funds received now in exchange for negative future payments. From the opposite viewpoint, positive future receipts correspond to a negative present investment. The sign is part of the cash-flow balance, not a declaration that an asset has a negative economic worth.
Complete worksheet example
Enter the following numeric inputs:
| Cell | Meaning | Value |
|---|---|---|
| A2 | Rate per period | 0.1 |
| A3 | Payment count | 2 |
| A4 | Regular payment | −121 |
| A5 | Terminal value | 0 |
| A6 | End-of-period timing | 0 |
Use =PV(A2,A3,A4,A5,A6) in B2. The independent expected result is 210.
The present magnitudes of the payments are 121/1.1=110 and 121/1.1²=100. Their sum is 210. The second payment is discounted for two periods because it occurs later, not merely because it occupies the second worksheet row.
For a sign control, =PV(0.1,2,121,0,0) gives −210. It represents the initial outflow corresponding to two positive future receipts.
Beginning-of-period example
=PV(0.1,2,-110,0,1) also gives 210. In this model the two payments occur at time zero and one period later. Their present magnitudes are 110 and 110/1.1=100.
The regular payment differs from the end-payment example on purpose: 110 at the beginning of each period is comparable in present value to 121 at the end under this particular rate. Moving the same payment amount earlier would increase its discounted magnitude.
Advanced use: separate a terminal amount
For a single terminal amount with no regular payments, =PV(0.1,2,0,-121,0) gives 100, since 121/1.1²=100. The zero pmt makes the structure explicit. A nonzero terminal value in an annuity model is an additional signed cash flow at the end; it is not the regular payment amount repeated in a different argument.
At zero rate, =PV(0,2,-121,0,0) gives 242, using the zero-rate equation printed by WPS. There is no discounting, so the two payment magnitudes simply add. This mathematical control does not establish every boundary or invalid-domain response of an untested build.
For any real model, distinguish the payment interval from the period used to quote the rate. The official lesson’s generic examples explain annual-to-monthly unit consistency. A label saying “annual rate” cannot make the function automatically divide that number by twelve.
Shared annuity model and limitations
The official WPS PV lesson prints the common annuity equation. For nonzero rate r and timing t, it balances the signed values as follows:
pv*(1+r)^n + pmt*(1+r*t)*((1+r)^n-1)/r + fv = 0
Its zero-rate branch is pv + pmt*n + fv = 0. The worked expectations solve this documented identity or independently accumulate/discount the same cash flows. They do not establish WPS’s internal numerical algorithm or a precision guarantee.
Use one consistent cash-flow viewpoint: amounts paid out are negative and amounts received are positive. Rate and period count must describe the same interval. Dividing an annual rate by 12 is appropriate for the nominal monthly convention shown in the lessons; it is not a universal conversion from every kind of quoted annual return.
The examples assume constant rates and regular equal payments. They do not include taxes, fees, changing rates, irregular dates or a product-specific repayment policy. The official lessons do not provide complete invalid-input/error tables, so no native error codes, fractional-argument coercion or invalid timing behavior are asserted. These are arithmetic examples, not recommendations for a financial product or a legally prescribed accounting treatment.
Evidence and version scope
The official WPS Academy PV lesson, published 2019-05-27, explicitly applies to WPS Office for Windows Personal. It was reviewed on October 18, 2026. The numeric build, introduction release and last supported version remain unknown. The source does not identify this function as deprecated or retired. Support in Linux, other editions and other platforms is not established by this lesson.
The worked examples are original mathematical expectations based on the official contract and formula illustration. They were not executed in WPS. Historical vendor demonstrations are documentation, not our application tests; no screenshot or runtime precision guarantee is supplied. English names and comma separators follow the lesson. Localized entry, workbook interchange and exact output formatting require verification in the intended client.