# PVLUMPSUM( ) function

Returns the present value of a lump sum due in a number of periods.

## Syntax

`PVLUMPSUM(rate, periods, amount)`

## Parameters

rate

Numeric. The interest rate per period.

periods

Numeric. The total number of periods.

amount

Numeric. The payment made at the end of the last period.

## Output

Numeric. The result is returned to two decimal places.

## Remarks

You can use this function to determine the present value of an amount to be received or paid in the future. The present value is the amount that a payment due in the future is worth today, based on an assumed interest rate. For example, if you owe money at a future date, the present value is the amount you need to put in the bank now, with compound interest, to cover the debt when it is due.

If you enter an obviously invalid parameter such as a negative interest rate, ACL returns an error.

## Example

Assuming an interest rate of 11% per annum compounded monthly, the present value of \$10,000 due in three years is:

PVLUMPSUM(0.11/12, 3 * 12, 10000)

returns 7200.05.

Related reference
FVLUMPSUM( ) function