Periodic interest rate,rate of return or discount rate (given present value,future value,number of periods)

Formula

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

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. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations.

Calculator (how to use calculator?)

Periodic interest rate,rate of return or discount rate (given present value,future value,number of periods) formula
PV
FV
n
i
Precision

Formula code

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References

  1. Wikepedia: Time value of money -- Future value of a present sum.

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