Present value of a future amount formula
Future Value Formula for a Present Value: \( FV = PV\left(1+\frac{r}{m}\right)^{mt} \) where r=R/100 and is generally applied with r as the yearly interest rate, t the number of years and m the number of compounding intervals per year. Present Value Formulas, Tables and Calculators. The easiest and most accurate way to calculate the present value of any future amounts (single amount, varying amounts, annuities) is to use an electronic financial calculator or computer software. Some electronic financial calculators are now available for less than $35. Present value (PV) is the current value 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.