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Present Value for Continuous Compounding Formula

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Present Value with Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding. Check FAQs

PV cc = \frac{FV}{e^{r \cdot n Periods}}

PV_cc - Present Value with Continuous Compounding?FV - Future Value?r - Rate per Period?n_Periods - Number of Periods?

Present Value for Continuous Compounding Example

With values

With units

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

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

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

29859.6348 = \frac{33000}{e^{0.05 \cdot 2}}

29859.6348 = \frac{33000}{e^{0.05 \cdot 2}}

29859.6348 = \frac{33000}{e^{0.05 \cdot 2}}

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Present Value for Continuous Compounding Solution

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

FIRST Step Consider the formula

PV cc = \frac{FV}{e^{r \cdot n Periods}}

Next Step Substitute values of Variables

∴

PV cc = \frac{33000}{e^{0.05 \cdot 2}}

Next Step Prepare to Evaluate

∴

PV cc = \frac{33000}{e^{0.05 \cdot 2}}

Next Step Evaluate

∴

PV cc = 29859.6347951867

LAST Step Rounding Answer

∴

PV cc = 29859.6348

Present Value for Continuous Compounding Formula Elements

Variables

Present Value with Continuous Compounding

Present Value with Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding.

Symbol: PV_cc

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value with Continuous Compounding

Future Value

Future Value is the calculated future value of any investment.

Symbol: FV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Value

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

Number of Periods

The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

Symbol: n_Periods

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find 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 for Continuous Compounding?

Present Value for Continuous Compounding evaluator uses Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)) to evaluate the Present Value with Continuous Compounding, The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding. Present Value with Continuous Compounding is denoted by PV_cc symbol.

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

FAQs on Present Value for Continuous Compounding

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

The formula of Present Value for Continuous Compounding is expressed as Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)). Here is an example- 29859.63 = 33000/(e^(0.05*2)).

How to calculate Present Value for Continuous Compounding?

With Future Value (FV), Rate per Period (r) & Number of Periods (n_Periods) we can find Present Value for Continuous Compounding using the formula - Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)).

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Present Value for Continuous Compounding Formula

Present Value for Continuous Compounding Example

Present Value for Continuous Compounding Solution

Present Value for Continuous Compounding Formula Elements

Other formulas in Present Value category

How to Evaluate Present Value for Continuous Compounding?

FAQs on Present Value for Continuous Compounding

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