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