Present Value of Money

Based on the concept of Time Value of Money. Highly related to the concept of Future Value of Money.

Calculating a present value ($PV$) mathematically is

$$PV=F{V}_n\times \frac{1}{(1+r{)}^n}$$

Where:

• $FV$: the future value
• $r$: the required rate of return
• $n$: the number of periods

Or using the excel function Excel Function - PV