Present Discounted Value Formula

Present Discounted Value Formula

Let us first define a discount before learning about the currently discounted value calculation. A discount is a price that is lower than the actual price of a product. The present discounted value formula is used to calculate the present discount value for a specific future payment due a year from now. You can get all Maths formulas on one-page visit the Maths Formulas section of HT. 

The future value, rate of return, and the number of periods are all used in the present discounted value formula. It is written as follows:

PV=FV / (1+r)ⁿ

Where,

• PV = present value
• FV = future value
• R = rate of return
• n = number of periods

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