Future payment at time t(given present value,rate and time )
future payment at time t
present value at time 0
base of the natural logarithm
continuously compounded rate
Present value, also known as present discounted value, is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk. Rates are sometimes converted into the continuous compound interest rate equivalent because the continuous equivalent is more convenient.