Time(given future payment,present value and continuously compounded rate )

Formula

Time(given future payment,present value and continuously compounded rate ) formula
t
time
PV
present value
FV
future payment at time t
e
base of the natural logarithm
r
continuously compounded 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. Rates are sometimes converted into the continuous compound interest rate equivalent because the continuous equivalent is more convenient.

Calculator (how to use calculator?)

Time(given future payment,present value and continuously compounded rate ) formula
PV
FV
e
r
t
Precision

Formula code








References

  1. Wikepedia:Continuous compounding.

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