**Present value (PV) of a future amount, **

### Definition of Present value (PV) of a future amount:

Sum of money that must be invested today, at a given rate of interest to grow to the desired amount on a specific future date.

The value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.

### How to use Present value (PV) of a future amount in a sentence?

- £110 due in 12 months time has a present value of £100 today, if invested at an annual rate of 10 per cent.

Meaning of Present value (PV) of a future amount & Present value (PV) of a future amount Definition