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

To calculate the present value of future rent, divide the future value by 1 plus the rate raised to the number of periods.

## How to Calculate the 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** **($)