Present value of a single cash flow (annual compounding of interest) formula
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.
Formula
\[ PV = FV_{N}\left (1+i \right )^{-N} \ \]
Symbols
\(FV\ \)
Future value
\(i\ \)
Annual interest rate
\(N\ \)
Number of years