Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   What is th formula for present value (https://www.askmehelpdesk.com/showthread.php?t=183390)

  • Feb 12, 2008, 04:41 PM
    tk_napper
    What is th formula for present value
    What is the formula for present value.
  • Feb 12, 2008, 07:21 PM
    morgaine300
    For compounded interest:

    FV = PV (1 + I)^n

    I prefer to use that equation and just use algebra to solve for PV.

    An actual equation for PV is basically just twisting it around to:
    FV/
    [(1 + I)^n]

    Either way, you have to do the parenthesis and exponent first, and then divide FV by your answer.

    Where I = interest rate per compounding period, and n = total number of compounding periods. Different books can use different letters there.

  • All times are GMT -7. The time now is 03:40 AM.