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Present Value of Outstanding Balance Formula

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Present Value of Outstanding Balance refers to the current value of the remaining balance on a loan or debt obligation. Check FAQs

PVOB = EP \cdot (1 - \frac{{(1 + R)}^{- n}}{R})

PVOB - Present Value of Outstanding Balance?EP - Existing Payment?R - Rate of Interest per Annum?n - Frequency of Payments?

Present Value of Outstanding Balance Example

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Here is how the Present Value of Outstanding Balance equation looks like with Values.

Here is how the Present Value of Outstanding Balance equation looks like with Units.

Here is how the Present Value of Outstanding Balance equation looks like.

5242.1057 = 7505 \cdot (1 - \frac{{(1 + 0.56)}^{- 4}}{0.56})

5242.1057 = 7505 \cdot (1 - \frac{{(1 + 0.56)}^{- 4}}{0.56})

5242.1057 = 7505 \cdot (1 - \frac{{(1 + 0.56)}^{- 4}}{0.56})

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Present Value of Outstanding Balance Solution

Follow our step by step solution on how to calculate Present Value of Outstanding Balance?

FIRST Step Consider the formula

PVOB = EP \cdot (1 - \frac{{(1 + R)}^{- n}}{R})

Next Step Substitute values of Variables

∴

PVOB = 7505 \cdot (1 - \frac{{(1 + 0.56)}^{- 4}}{0.56})

Next Step Prepare to Evaluate

∴

PVOB = 7505 \cdot (1 - \frac{{(1 + 0.56)}^{- 4}}{0.56})

Next Step Evaluate

∴

PVOB = 5242.10566007827

LAST Step Rounding Answer

∴

PVOB = 5242.1057

Present Value of Outstanding Balance Formula Elements

Variables

Present Value of Outstanding Balance

Present Value of Outstanding Balance refers to the current value of the remaining balance on a loan or debt obligation.

Symbol: PVOB

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value of Outstanding Balance

Existing Payment

Existing Payment refers to the regular payment amount that a borrower is currently making towards a loan or debt obligation.

Symbol: EP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Existing Payment

Rate of Interest per Annum

Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Interest per Annum

Frequency of Payments

Frequency of Payments refers to how often payments are made within a specific period, such as daily, weekly, monthly, quarterly, semi-annually, or annually.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Frequency of Payments

Other formulas in Debt Management category

Go Senior Debt Ratio

SDR = \frac{SD}{EBITDA}

Go Mortgage Refinance Breakeven Point

MRBP = \frac{TLC}{MS}

Go Overhead Rate

OR = \frac{OC}{Rev}

Go Debt Service Coverage Ratio

DSCR = \frac{NOI}{AD}

How to Evaluate Present Value of Outstanding Balance?

Present Value of Outstanding Balance evaluator uses Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum) to evaluate the Present Value of Outstanding Balance, Present Value of Outstanding Balance refers to the current worth of the total amount owed on a debt or financial obligation. Present Value of Outstanding Balance is denoted by PVOB symbol.

How to evaluate Present Value of Outstanding Balance using this online evaluator? To use this online evaluator for Present Value of Outstanding Balance, enter Existing Payment (EP), Rate of Interest per Annum (R) & Frequency of Payments (n) and hit the calculate button.

FAQs on Present Value of Outstanding Balance

What is the formula to find Present Value of Outstanding Balance?

The formula of Present Value of Outstanding Balance is expressed as Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum). Here is an example- 5242.106 = 7505*(1-(1+0.56)^(-4)/0.56).

How to calculate Present Value of Outstanding Balance?

With Existing Payment (EP), Rate of Interest per Annum (R) & Frequency of Payments (n) we can find Present Value of Outstanding Balance using the formula - Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum).

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Present Value of Outstanding Balance Formula

Present Value of Outstanding Balance Example

Present Value of Outstanding Balance Solution

Present Value of Outstanding Balance Formula Elements

Other formulas in Debt Management category

How to Evaluate Present Value of Outstanding Balance?

FAQs on Present Value of Outstanding Balance

Variable Name