Present Value Calculator
Lump Sum Present Value
Present Value of Annuity
Formula
PV = FV / (1 + r)^n; PV Annuity = PMT × [(1 - (1 + r)^-n) / r]
Frequently Asked Questions
What is present value?
Present value is today's value of a future amount of money, discounted at a specific rate. It reflects the principle that money today is worth more than the same amount in the future.
How is the discount rate chosen?
The discount rate typically reflects the opportunity cost of capital, inflation expectations, or the required rate of return. Common choices include market interest rates or a company's cost of capital.
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