Present value of a single cash flow (annual compounding of interest) formula

Tags: placements time value of money

Description of the Present value of a single cash flow (annual compounding of interest) formula

Formula for the calculation of the present value of a single cash flow with annual compounding of interest.

P V = F V_{N} {(1 + i)}^{- N}

F V

Future value

i

Annual interest rate

N

Number of years