Present value

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Updated: Aug 20, 2021

Present value

In short – how much must be invested today to acheive a specific sum some time in the future.

When calculating the present value, one needs to know the future value one wants to derive at. Then divide this value on 1 plus the interest rate, times the number of years until the future value is needed.


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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.