Calculates the number of periods required by an investment to attain the desired value.
PDURATION(Rate; PV; FV)
Rate is a constant. The interest rate is to be calculated for the entire duration (duration period). The interest rate per period is calculated by dividing the interest rate by the calculated duration. The internal rate for an annuity is to be entered as Rate/12.
PV is the present (current) value. The cash value is the deposit of cash or the current cash value of an allowance in kind. As a deposit value a positive value must be entered; the deposit must not be 0 or <0.
FV is the expected value. The future value determines the desired (future) value of the deposit.
At an interest rate of 4.75%, a cash value of 25,000 currency units and a future value of 1,000,000 currency units, a duration of 79.49 payment periods is returned. The periodic payment is the resulting quotient from the future value and the duration, in this case 1,000,000/79.49=12,850.20.