### Formula

n

number of periods

PV

present value at time=0

FV

future value at time=n

i

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

n

number of periods

PV

present value at time=0

FV

future value at time=n

i

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

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. This formula is used to calculate the number of periods needed to get to the future value.

PV

FV

i

n

Precision

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