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X Step 1 of 5 Present value is the amount of money worth today that is to be received in future. Compute the present value by using the following formula: Present value = Fixed payment Fixed payment Fixed payment Fixed payment +... (1+i)' ( 1+i) (1+i) (1+i)" Nominal interest rate is the rate before adjusting inflation and any fee. When inflation rate is given nominal interest rate is adjusted by the inflation rate to find the real interest rate. Real interest rate is the return that an investor or lender receives for amount invested. Real rate = 1 + Nominal rate 1 + Inflation rate