Enter the future value ($), the rate (%), and the number of periods into the calculator to determine the Present Value of Future Rent.
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Present Value of Future Rent Formula
The following formula is used to calculate the Present Value of Future Rent.
PVf = FV / (1+r)^n
- Where PVf is the Present Value of Future Rent ($)
- FV is the future value ($)
- r is the rate (%)
- n is the number of periods
How to Calculate Present Value of Future Rent?
The following example problems outline how to calculate Present Value of Future Rent.
Example Problem #1
- First, determine the future value ($). In this example, the future value ($) is given as 1000 .
- Next, determine the rate (%). For this problem, the rate (%) is given as .2 .
- Next, determine the number of periods. In this case, the number of periods is found to be 10.
- Finally, calculate the Present Value of Future Rent using the formula above:
PVf = FV / (1+r)^n
Inserting the values from above yields:
PVf = 1000 / (1+.2)^10 = 161.505 ($)
Example Problem #2
The variables needed for this problem are provided below:
future value ($) = 2000
rate (%) = .3
number of periods = 10
Entering these values and solving gives:
PVf = 2000 / (1+.3)^10 = 145.07 ($)
