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Present Value Continuous Compounding Factor Formula

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PV Continuous Compounding Factor is used to calculate the present value of a future sum with continuous compounding at a specified interest rate over a given time period. Check FAQs

F PV = (e^{- r \cdot t})

F_PV - PV Continuous Compounding Factor?r - Rate per Period?t - Total Number of Periods?

Present Value Continuous Compounding Factor Example

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Here is how the Present Value Continuous Compounding Factor equation looks like with Values.

Here is how the Present Value Continuous Compounding Factor equation looks like with Units.

Here is how the Present Value Continuous Compounding Factor equation looks like.

0.6703 = (e^{- 0.05 \cdot 8})

0.6703 = (e^{- 0.05 \cdot 8})

0.6703 = (e^{- 0.05 \cdot 8})

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Present Value Continuous Compounding Factor Solution

Follow our step by step solution on how to calculate Present Value Continuous Compounding Factor?

FIRST Step Consider the formula

F PV = (e^{- r \cdot t})

Next Step Substitute values of Variables

∴

F PV = (e^{- 0.05 \cdot 8})

Next Step Prepare to Evaluate

∴

F PV = (e^{- 0.05 \cdot 8})

Next Step Evaluate

∴

F PV = 0.670320046035639

LAST Step Rounding Answer

∴

F PV = 0.6703

Present Value Continuous Compounding Factor Formula Elements

Variables

PV Continuous Compounding Factor

PV Continuous Compounding Factor is used to calculate the present value of a future sum with continuous compounding at a specified interest rate over a given time period.

Symbol: F_PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find PV Continuous Compounding Factor

Rate per Period

The Rate per Period is the interest rate charged.

Symbol: r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate per Period

Total Number of Periods

Total Number of Periods is the total number of compounding periods for the life of the investment.

Symbol: t

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Number of Periods

Other formulas in Present Value category

Go Present Value of Annuity

PVAnnuity = (\frac{p}{IR}) \cdot (1 - (\frac{1}{{(1 + IR)}^{n Months}}))

Go Present Value of Future Sum given compounding periods

PV = \frac{FV}{{(1 + (\frac{%RoR}{C n}))}^{C n \cdot n Periods}}

Go Present Value of Future Sum given Total Number of Periods

PV = \frac{FV}{{(1 + IR)}^{t}}

Go Present Value of Future Sum given Number of Periods

PV = \frac{FV}{\exp (%RoR \cdot n Periods)}

How to Evaluate Present Value Continuous Compounding Factor?

Present Value Continuous Compounding Factor evaluator uses PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods)) to evaluate the PV Continuous Compounding Factor, The Present Value Continuous Compounding Factor represents the value of a future cash flow discounted at a continuously compounded interest rate. PV Continuous Compounding Factor is denoted by F_PV symbol.

How to evaluate Present Value Continuous Compounding Factor using this online evaluator? To use this online evaluator for Present Value Continuous Compounding Factor, enter Rate per Period (r) & Total Number of Periods (t) and hit the calculate button.

FAQs on Present Value Continuous Compounding Factor

What is the formula to find Present Value Continuous Compounding Factor?

The formula of Present Value Continuous Compounding Factor is expressed as PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods)). Here is an example- 0.67032 = (e^(-0.05*8)).

How to calculate Present Value Continuous Compounding Factor?

With Rate per Period (r) & Total Number of Periods (t) we can find Present Value Continuous Compounding Factor using the formula - PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods)).

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Present Value Continuous Compounding Factor Formula

Present Value Continuous Compounding Factor Example

Present Value Continuous Compounding Factor Solution

Present Value Continuous Compounding Factor Formula Elements

Other formulas in Present Value category

How to Evaluate Present Value Continuous Compounding Factor?

FAQs on Present Value Continuous Compounding Factor

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