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Number of periods or years (present value,future value,periodic interest rate or required rate of return)
Formula
n
numbers of periods (months, quarters or years)
P
present value
S
future value
i
periodic (monthly,quarterly or yearly) interest rate
Formula description
Present value, also known as present discounted value, is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk. This formula is used to calculate the length of time required for a single cash flow (present value) to reach a certain amount(future value), given a certain interest rate.