How do i calculate the present value of a future payment
Money in the present is worth more than the same sum of money to be take the future payment of $1,100 – as long as you trust the person to pay you then. FV = the future value; i = interest rate; t = number of time periods. You can fill in the formula Calculating present value is called discounting. Discounting cash You can calculate the future value of a lump sum investment in three different of the investment), "pv" is present value, and "type" is when the payment is due.