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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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15y ago

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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 PDV formula used for in financial analysis and how can it be applied to evaluate the present value of future cash flows?

The PDV formula, also known as Present Discounted Value formula, is used in financial analysis to calculate the current value of future cash flows. It takes into account the time value of money by discounting future cash flows back to their present value. By applying the PDV formula, analysts can evaluate the profitability and risk associated with an investment or project by determining its net present value. This helps in making informed decisions about whether to proceed with the investment based on its potential returns compared to the initial cost.


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 the formula for calculating the future value of compound interest bonds?

The formula for calculating the future value of compound interest bonds is: FV PV (1 r)n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of compounding periods.