Present Value (Single Amount)

Present Value (Single Amount)

FI-02
ASPCSPFoundational

Formula
P = F(1 + i)⁻ⁿ
When to Use

Calculate the present worth of a future sum of money. Used in cost-benefit analysis to compare future costs in today's dollars.

Symbol Legend
SymbolMeaningUnitNote
PPresent valueprincipal
FFuture value$
iInterest rate per perioddecimal
nNumber of periodsyears

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