# Present Value Calculator

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## Present Value Formula

Present Value = FV / (1 + i)^{n}

1.PV = the value at time zero

2.FV = the value at time n

3.i = the discount rate (or interest rate)

4.n = the number of periods

## Present Value Example

Chase would like to have $500 in todays value, in 2 years from now. He is considering using a bank that offering 6%, how much does he need to put in the account today to have $500 when his 2 years is completed?

He will need $444.998 in order to reach $500 2 years from now.

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