Present value of some future amount

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How much do I have to invest today to have some specified amount in the future?

  • FV=PV(1+r)t
  • Rearrange to solve for PV=FV/(1+r)t

When we talk about discounting, we mean finding the present value of some future amount.

When we talk about the "value" of something, we are talking about the present value unless we specifically indicate that we want the future value.

Reference no: EM133254079

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