Series 79: 3.5.9.1. Present Value

Taken from our Series 79 Online Guide

3.5.9.1. Present Value

The concept of present value is the reverse of the concept of future value. Instead of trying to figure out what something will be worth in the future, present value calculates what the value of a future amount is today.

Calculating present value of something is not much different from calculating the future value of something, except that you use division instead of multiplication. Note also that “principal” has been relabeled “present value.” The formula for calculating the present value of a single sum to be received or needed in the future is:

In this

Since you're reading about Series 79: 3.5.9.1. Present Value, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 79
Please Enable Javascript
to view this content!