The Present Value (PV) calculator computes the present value (PV) based on the Future Value (FV), Number of Years (n) and the Annual Interest Rate (r).
INSTRUCTIONS: Choose units and enter the following:
Present Value (PV): The calculator returns the Present Value in U.S. dollars. However this can be automatically converted to other currencies via the pull-down menu.
Thecomputes the present value of money planned or estimated in the future that has been discounted to reflect its current value as if it existed today. The is:
`PV = "FV"/(1+r)^n`
This estimation technique supports the Program Management assessment of project fiscal status as defined in the Earned Value Management approach. These calculations are used to make comparisons between cash flows that do not occur on the same schedule
If a worker is to receive $ 2000 in 4 year, and the effective annual interest rate during this period is 11%, then the present value of this amount is $ 1462.38