Present value (PV) of a future amount

Present value (PV) of a future amount,

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

  1. How much money should be spent today at a certain interest rate to get the required amount at a certain time in the future.

  2. The current value of the cash is compared to the future value in which it would have invested in compound interest.

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

  1. Nowadays, the value of 100 is the current value of 100 months when investing with 10 months of annual interest.

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