To calculate the PV Factor of 1 percent interest (i) and 6 periods(n) we used the following formula:|
PV Factor = [1 / (1 + i)^n]
When we enter 1 percent and 6 periods into our formula, we get:
PV Factor = [1 / (1 + 0.01)^6]
Which equals a PV Factor of:
Now you can multiply the PV Factor with any future amount to get the present value, like this:
PV = FV Amount x PV Factor
For your convenience, you can enter your Future Value (FV) amount below and press "Calculate".
We will then multiply your amount with the PV Factor above and give you the Present Value Answer.
Remember that the number you enter in the box above is the future value, and the result displayed in green is the present value which should be LESS than the future value.
Also note that we rounded all the dollar-amount answers to two decimals. If the result is an extremely low number, you may get
the answer 0.00.