Present value of a future value (given periodic interest rate or rate of return,number of periods)

Formula

Present value of a future value (given periodic interest rate or rate of return,number of periods) formula
P
present value
C
future value or amount of money in the future
t
numbers of periods (months, quarters or years)
i
periodic (monthly,quarterly or yearly) interest rate

Formula description

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 used to calculate the present value of an amount C that is received at a future date.

Calculator (how to use calculator?)

Present value of a future value (given periodic interest rate or rate of return,number of periods) formula
C
t
i
P
Precision

Formula code

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References

  1. Wikepedia: Present value.

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