# Documentation/Calc Functions/PDURATION

PDURATION

## Category:

Financial Analysis

## Summary:

Calculates the number of periods required by an investment to attain the desired value.

## Syntax:

PDURATION(Rate; PV; FV)

## Returns:

Returns a real number which is the number of periods required by an investment, PV, to attain the desired value,FV, at a given rate, Rate.

## Arguments:

Rate is a real number (expressed as a percentage or fraction) or a reference to the cell containing that number which 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 a positive real number or a reference to the cell containing that number which is the present cash value in a sequence of payments. The cash value is the deposit of cash or the current cash value of an allowance in kind.

FV is a real number or a reference to the cell containing that number which is the desired value (future value) at the end of the periods.

• If either of Rate, PV or FV is less than or equal to 0, then the function returns an error value.
• If PV is greater than FV then the function returns a negative period.

• The formula for PDURATION is:

## Examples:

Formula Description Returns
=PDURATION(4.75%;25000;1000000) 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. 79.4907946994014
=PDURATION(0;25000;257600) The function will return an error value since Rate is 0. Err:502

PDURATION