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It gives you the current value of an investment based on a fixed interest rate and payment schedule. See the link below for more information.

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Q: What is the present value formula?
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Related questions

How do you find future value of share if you have present of it?

F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n


What is the Formula for annuity in advance?

can someone please type me the formula of calculatins Present Value (PV) in advance


How do you derive PVI formula?

The present value interest factor (PVIF) is derived using the formula: PVIF = 1 / (1 + r)^n. This formula calculates the value of $1 received in the future discounted back to its present value using the interest rate (r) and number of periods (n).


What is the present value of 3 year annuity of 100 if discount rate is 6%?

The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.


How is present value annuity factor calculated?

The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.


What is the formula for PVIFA in Excel?

The PVIFA formula in excel refers to Present Value Interest Factor of Annuity. This is able to be calculated in an excel document.


How is the future value of a mixed stream of cash flows calculated?

formula for future value of a mixed stream


What is the formula for Present Value Interest Factor?

Present Value Interest Factor, abbreviated as PVIF and is used to simplify present value computations, may be computed as follows: PVIF = 1 / ( ( 1 + r) ^ t) where... r = interest discount rate t = number of periods


What is the formula used in present value calculators?

Present value, also known as present discounted value, is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk. Present value calculations are widely used in business and economics to provide a means to compare cash flows at different times on a meaningful "like to like" basis.


What is the reason for negative relationship between bond price and yield?

The Present Value (value now) of a fixed cashflow, paid in the future is calculated using the following formula; Present Value = Cashflow/(1+ yield) As the yield rises, the PV falls.


What is Hoskold formula?

Accoding to Webster's, the Hoskold Formula is a "Two-rate valuation formula, once much used to determine present value (Vp) of mining properties or shares, with redemption of capital invested.Largely replaced by Morkill's formula


As the discount rate increases without limit the present value of a future cash flow?

Decreases.... The formula is PV = $1 / (1 + r)t PV = Present Value r = discount rate Because 1/r continues to get smaller as r increases, thus resulting in an exponentially smaller Present Value.