As regular payments will clear a loan balance over the term, the present value (PV) of the payments must be equal to the value of the loan. It follows that the remaining balance on an loan can be calculated by calculating the present value (PV) of the outstanding loan repayments.

# Tag: Annuity

## Present Value of a Growing Annuity Formula

The present value of a growing annuity formula is used to calculate the present value of a series of periodic payments which increase at a constant rate each period. The payments made at the end of each period, and a discount rate i% is applied.

## Excel PV Function

## Excel RATE Function

The Excel RATE function is used to calculate the discount rate (i) in time value of money calculations. For example, it can calculate the interest rate on a loan given the value of the loan, the term and the periodic payments, it can be used to calculate the interest rate earned on a savings account, or the interest rate needed to generate annuity payments from a lump sum investment.

## Excel FV Function

## Excel NPER Function

The Excel NPER function is one of many Excel financial functions, and can be used to calculate the number of periods for a lump sum, annuity or annuity due to grow to a future value. In addition the function can also be used to calculate the number of periods it takes for a loan to be repaid.

## Excel PMT Function

The Excel PMT function is used to calculate the payment (Pmt) in time value of money calculations. For example, it can calculate the payments needed to clear a loan balance, the deposits to a savings account to grow to a future value, or annuity and annuity due payments from a lump sum investment.