The Present Value is the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest. It is the concept that states an amount of money today is worth more than that same amount in the future. In other words, money received in the future is not worth as much as an equal amount received today.
Present Value = FV/(1+r)n
Present Value = FV/(1+r)n
where:
FV = Future Value
r = Rate of Return
n = Number of Periods
This calculator will basically help you to know the present value of a future amount at some rate or return.
For Example,
Let's put these number in the above calculator to know the present value of the future amount -
- Future Value - Rs 50,000
- Years from Now - 5 yrs
- Yearly Return - 9%
- Compounding - Yearly
So the Present value of Rs 50,000 will be Rs 32,500.
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