### Formula

n

number of periods

P

present value

R

periodic payment or amount of cash flows

i

periodic interest rate or required rate of return

n

number of periods

P

present value

R

periodic payment or amount of cash flows

i

periodic interest rate or required rate of return

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. This formula is for calculating the number of periods or the length of time required for a single cash flow (present value).

P

R

i

n

Precision

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