## Present Value Calculator

Use the Home link to return to the home page. Do not use the back button.

**The present value is $5,172.56.**

Notes:

1. Use the Home link to return to the home page. Do not use the back button.

2. Interest Rate%: is the interest paid to the account at the end of each period. (Not annualized.)

3. Periods: is the number of periods. Interest is paid and payments are made at the end of each period.

4. Payment: is the amount to be withdrawn at the end of each period.

5. Present value calculations become unreliable when the interest rate drops below some trivial value

(of say .01%/year) and break down completely at zero interest rate. In this case use another method.

6. User input can be any constant statement using only numerics and +, -, *, and /. For example 6/12

could be entered to convert an annualized 6% rate into a monthly rate.

Example: You want to withdraw $100 per month from an account earning 6% (annualized) for 5 years.

How much must be deposited now (present value) to provide that cash flow?

Interest Rate% = 6/12 (Since Payments are being made monthly.)

Periods = 5*12 (12 monthly periods per year for 5 years); Payment = 100