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

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

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

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?

- 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