Present value Calculator
Written by:Abraham A.Finance.ThinkAndDone.com provides you online and windows calculators to calculate present value PV of a lump-sum given the interest rate per period and number of periods. Present value represents the discounted value of a lump-sum; Interest may be discounted either discretely or it may be discounted continuously, the present value calculator considers both these options and the results will show that present value is lower when interest is discounted continuously whereas present value is higher when interest is discounted on discrete terms. The online present value calculator also permits you to find interest rate i when PV and number of periods n are given, and finds number of periods n when PV and interest rate i are given.
Present value Calculator
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Please enter the authorization code in the box located below:
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Discrete Compounding |
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Continuous Compounding |
Instructions
To use this online calculator to calculate present value PV of a lump-sum, you need to enter the lump-sum amount, the interest rate per period i and number of periods n.
- Assuming amount of money equals $250 interest rate is 5 percent for 5 years
- You have to type in 250 for amount, 2.50 for interest rate and 5 for years
To use this online calculator to calculate interest rate, you need to type in present value PV , the initial amount and number of periods.
- Assuming present value of $250 is 220.96 for 5 years
- You have to type in 500 for amount, 220.96 for PV and 5 for years
To use this online calculator to calculate number of periods n, you need to type in initial amount, it's present value PV and interest rate n.
- Assuming present value of $300 is 223.86 at 5 percent rate of interest
- You have to type in 223.86 for PV, 300 for initial amount and 5 for interest rate