Present Value Calculator, Basic
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Calculator Use
Calculate the Present Value and Present Value Interest Factor (PVIF) for a future value return from a number of years at an annual interest rate. For simplicity, this basic calculator sets time periods to years and compounding is monthly. For more advanced calculations choose another present value calculator.
- Number of Years (t)
- Enter whole numbers or use decimals for partial periods such as months for example, 7.5 years is 7 yr 6 mo.
- Interest Rate (R)
- is the nominal interest rate or "stated rate" in percent for each period. r = R/100, the interest rate in decimal
- Future Value (FV)
- the calculated future value of our investment
- Period
- commonly a period will be a year but it can be any time interval you want as long as all inputs are consistent.
- Present Value (PV)
- is the present value or principal amount to be invested.
- PVIF
- Present Value Interest Factor that accounts for your input Number of Periods, Interest Rate and Compounding Frequency and can now be applied to other future value amounts to find the present value under the same conditions.
Simple Present Value of Future Value:
\( PV = \dfrac{FV}{(1+i)} \)
where i is the rate per period in decimal form.
Cite this content, page or calculator as:
Furey, Edward "Present Value Calculator, Basic"; from https://www.calculatorsoup.com - Online Calculator Resource.
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