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Present Value of Future Sum given compounding periods Formula

GoPresent Value of Future Sum given Total Number of Periods Formula

GoPresent Value of Future Sum given Number of Periods Formula

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The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time. Check FAQs

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

PV - Present Value?FV - Future Value?%RoR - Rate of Return?C_n - Compounding Periods?n_Periods - Number of Periods?

Present Value of Future Sum given compounding periods Example

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Here is how the Present Value of Future Sum given compounding periods equation looks like with Values.

Here is how the Present Value of Future Sum given compounding periods equation looks like with Units.

Here is how the Present Value of Future Sum given compounding periods equation looks like.

17.4524 = \frac{33000}{{(1 + (\frac{4.5}{11}))}^{11 \cdot 2}}

17.4524 = \frac{33000}{{(1 + (\frac{4.5}{11}))}^{11 \cdot 2}}

17.4524 = \frac{33000}{{(1 + (\frac{4.5}{11}))}^{11 \cdot 2}}

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Present Value of Future Sum given compounding periods Solution

Follow our step by step solution on how to calculate Present Value of Future Sum given compounding periods?

FIRST Step Consider the formula

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

Next Step Substitute values of Variables

∴

PV = \frac{33000}{{(1 + (\frac{4.5}{11}))}^{11 \cdot 2}}

Next Step Prepare to Evaluate

∴

PV = \frac{33000}{{(1 + (\frac{4.5}{11}))}^{11 \cdot 2}}

Next Step Evaluate

∴

PV = 17.4524199070997

LAST Step Rounding Answer

∴

PV = 17.4524

Present Value of Future Sum given compounding periods Formula Elements

Variables

Present Value

The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value

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 of Return

A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

Symbol: %RoR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Return

Compounding Periods

Compounding Periods is the number of times compounding will occur during a period.

Symbol: C_n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Compounding Periods

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 to find Present Value

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)}

Go Present Value of Ordinary Annuities and Amortization

PV = PMT \cdot (\frac{1 - {(1 + r)}^{- n c}}{r})

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 Lumpsum

PV L = \frac{FV}{{(1 + IR P)}^{n Periods}}

Go Present Value of Growing Annuity

PV ga = (\frac{II}{r - g}) \cdot (1 - {(\frac{1 + g}{1 + r})}^{n Periods})

Go Present Value of Stock with Constant Growth

P = \frac{D1}{(%RoR \cdot 0.01) - g}

How to Evaluate Present Value of Future Sum given compounding periods?

Present Value of Future Sum given compounding periods evaluator uses Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) to evaluate the Present Value, Present Value of Future Sum given compounding periods is the value that determines the value of a series of future periodic payments at a given time when the compounding periods are provided. Present Value is denoted by PV symbol.

How to evaluate Present Value of Future Sum given compounding periods using this online evaluator? To use this online evaluator for Present Value of Future Sum given compounding periods, enter Future Value (FV), Rate of Return (%RoR), Compounding Periods (C_n) & Number of Periods (n_Periods) and hit the calculate button.

FAQs on Present Value of Future Sum given compounding periods

What is the formula to find Present Value of Future Sum given compounding periods?

The formula of Present Value of Future Sum given compounding periods is expressed as Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods). Here is an example- 35.9042 = 33000/(1+(4.5/11))^(11*2).

How to calculate Present Value of Future Sum given compounding periods?

With Future Value (FV), Rate of Return (%RoR), Compounding Periods (C_n) & Number of Periods (n_Periods) we can find Present Value of Future Sum given compounding periods using the formula - Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods).

What are the other ways to Calculate Present Value?

Here are the different ways to Calculate Present Value-

Present Value=Future Value/(1+Interest Rate)^Total Number of Periods
Present Value=Future Value/exp(Rate of Return*Number of Periods)
Present Value=Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)

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Present Value of Future Sum given compounding periods Formula

​GoPresent Value of Future Sum given Total Number of Periods Formula

​GoPresent Value of Future Sum given Number of Periods Formula

Present Value of Future Sum given compounding periods Example

Present Value of Future Sum given compounding periods Solution

Present Value of Future Sum given compounding periods Formula Elements

Other Formulas to find Present Value

Other formulas in Present Value category

How to Evaluate Present Value of Future Sum given compounding periods?

FAQs on Present Value of Future Sum given compounding periods

Variable Name

GoPresent Value of Future Sum given Total Number of Periods Formula

GoPresent Value of Future Sum given Number of Periods Formula