### Formula

PV

cumulative present value of future cash flows

FVt

value of cash flow at time=t

i

discount rate, or the interest rate at which the amount will be compounded each period

n

number of periods

PV

cumulative present value of future cash flows

FVt

value of cash flow at time=t

i

discount rate, or the interest rate at which the amount will be compounded each period

n

number of periods

The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. The cumulative present value of future cash flows can be calculated by summing the contributions of FVt, the value of cash flow at time=t. In the calculator, FVt is assumed to be a constant.

FVt

i

n

PV

Precision

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