PRESENT VALUE CALCULATOR

Present Value Calculator

This calculator helps you find out the present value of the amount promised to you at some later date. Present value is the current worth of a future sum of money and is determined by discounting (decreasing the value by multiplying the future value with appropriate factor). It also takes into account the value eroded by inflation over time. Since money deposited in the bank will fetch interest one would prefer to receive money today rather than the same amount in future. If offered a choice between Rs.100 today and Rs100 in one year, a rational person will choose Rs.100 today. Thus the same amount of money has different value over time.

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