Economics
Present value
Present value is today's equivalent of a future amount or payment stream after discounting.
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PV = FV / (1 + r / 100)ⁿ
- 01Given
- 02Calculation
- 03Answer
What it means
Present value is today's equivalent of a future amount or payment stream after discounting.
How it works and where it is used
Use this calculation for planning deposits, loans, recurring payments, investments, and the time value of money.