# Present Value

## The value of money in the future is the Present Value.

The value of money in the future can be calculated to Present Value or Present Worth with the "*discount rate*" as

P = F / (1 + i)^{n}(1)

where

F = future cash flow (positive for receipts, negative for disbursements)

P = present value

i = discount rate

n = number of interest periods

The factor *"1 / (1 + i) ^{n}"* is known as the "

*single payment present worth factor*".

### Present Value - Online Calculator

*F - single future cash flow*

* i - discount rate (%)*

* n - number of periods*

### Example - Present Value

The present value of a future cash flow of *7* in period * 10* with discount rate *5% (i = 0.05)* can be calculated as

P = (7) / (1 + 0.05)^{10}

^{ }= 4.30