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 the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.