How do you compute present value?

You may also value from this link which walks through the true value of this concept: http://www.onemillionbucks.net/2008/10/time-value-of-money-not-40-year-old.html Source: Wikipedia The present value (PV) formula has four variables, each of which can be solved for: # PV is the value at time=0 # FV is the value at time=n # i is the rate at which the amount will be compounded each period # n is the number of periods (not necessarily an integer) :

The cumulative present value of future cash flows can be calculated by summing the contributions of FVt, the value of cash flow at time=t : Note that this series can be summed for a given value of n, or when n is .[2] This is a very general formula, which leads to several important special cases given below.