# Present Value Calculator

Instructions: Compute the present value ($$PV$$) by indicating the future value ($$FV$$), the interest rate ($$r$$), number of years ($$n$$) the money will be invested, and the type of compounding (yearly, bi-yearly, quarterly, monthly, weekly, daily or continuously):

Future Value $$(FV)$$ =
Number of Years $$(n)$$ =
Interest Rate $$(r)$$ =
Compounding Period:

#### Present Value Calculator

More about the this present value calculator so you can better understand how to use this solver: The present value ($$PV$$) of a certain amount of money that will have certain future value ($$FV$$) after a number of years, depends on the number of years $$n$$ when the money will be received, the interest rate $$r$$, the type of compounding (yearly, bi-yearly, quarterly, monthly, weekly, daily or continuously). Let $$k$$ be the number of times the money is compounded in a year. For example, for yearly compounding we have $$k = 1$$, for bi-yearly compounding we have $$k = 2$$, for quarterly compounding we have $$k = 4$$, etc. The present value ($$PV$$) can be computed using the following formula:

$PV = \frac{FV}{\left( 1+\frac{r}{k}\right)^{ k \times n} }$

For continuous compounding, we get that $$k \to \infty$$, in which case we need to use the following formula instead.

$PV = \frac{FV}{e^{r \times n}}$

If instead you know the present value and you want to compute the future value, use this calculator.

In case you have any suggestion, or if you would like to report a broken solver/calculator, please do not hesitate to contact us.

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