Present Value
The Present Value of money in the future
Sponsored Links
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
Example - Present Value
The present value of a future cash flow of an amount of 7 in period 10 with discount rate 5% (i = 0.05) can be calculated as
P = (7) / (1 + 0.05)10
= 4.30
Sponsored Links
Related Topics
Related Documents
Tag Search
- en: present value discount rate future money investments
- es: valor actual tasa de descuento de las futuras inversiones de dinero
- de: Barwert Diskontsatz zukünftigen Geldanlagen
