Finance
Present Value
Present value of a future sum.
Formula
Formula
PV = FV1 + r
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| FV | future value | real number (ℝ) | — | input |
| r | rate per period | real number (ℝ) | — | input |
| n | periods | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givenfuture value = 2000, rate (%) = 7, periods = 10
Result1016.698584
Example 2
Givenfuture value = 10000, rate (%) = 5, periods = 20
Result3768.894829