Number of periods,months or year (present value,future value,periodic interest rate or required rate of return)

Formula

Number of periods,months or year (present value,future value,periodic interest rate or required rate of return) formula
n
number of periods
PV
present value at time=0
FV
future value at time=n
i
discount rate, or the interest rate at which the amount will be compounded each period

Formula description

The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. This formula is used to calculate the number of periods needed to get to the future value.

Calculator (how to use calculator?)

Number of periods,months or year (present value,future value,periodic interest rate or required rate of return) formula
PV
FV
i
n
Precision

Formula code

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References

  1. Wikepedia: Time value of money -- Present value of a future sum.

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