The Excel PDURATION function returns the number of periods required for an investment to reach a desired value.
Syntax:= PDURATION (rate, pv, fv)
The PDURATION function syntax has the following arguments:
- Rate Required. Rate is the interest rate per period.
- Pv Required. Pv is the present value of the investment.
- Fv Required. Fv is the desired future value of the investment.
PDURATION uses the following equation, where specifiedValue is equal to fv, and currentValue is equal to pv:
Example: Let’s look at some Excel PDURATION function examples and explore how to use the PDURATION function as a worksheet function in Microsoft Excel:
Based on the Excel spreadsheet above, the following PDURATION examples would return:
- #NUM! error – Occurs in the following situations:
- When the arguments given are negative or equal to 0.
- Any of the given arguments of the formula is in an invalid format.
- #VALUE! error – Occurs when any of the arguments in the formula uses valid data types that are non-numeric.