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

Tags: placements time value of money

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

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

P V = F V_{N} {(1 + \frac{i}{m})}^{- m \cdot N}

F V

Future value

i

Annual interest rate

m

Number of discount periods per year

N

Number of years