Here, PV - present value; 1 interest rate per year, and N = number of periods. You can use calculators and spreadsheets to find future values. A graph of the compounding process shows how any sum grows over time at various interest rates. The greater the interest rate, the faster the growth rate. Finding the present value (PV) is called discounting, and it is simply the reverse of cond . In general, the present value of a cash flow due N years in the future is the amount which, if it were on hand today, would grow to equal the given future amount. The PV equation is: A graph of the discounting process shows how the present value of any sum to be received in the future decreases and approaches as the years to receipt increases, and the present value declines faster at per interest rates. The fundamental goal of financial management is to maximize the firm's value, and the value of any asset is the value of its expected future cash flows. One can solve for either the interest rate or the number of periods using the PV and the P equations. The easiest way to solve for these variables is with a financial calculator or a Here, PV - present value; 1 interest rate per year, and N = number of periods. You can use calculators and spreadsheets to find future values. A graph of the compounding process shows how any sum grows over time at various interest rates. The greater the interest rate, the faster the growth rate. Finding the present value (PV) is called discounting, and it is simply the reverse of cond . In general, the present value of a cash flow due N years in the future is the amount which, if it were on hand today, would grow to equal the given future amount. The PV equation is: A graph of the discounting process shows how the present value of any sum to be received in the future decreases and approaches as the years to receipt increases, and the present value declines faster at per interest rates. The fundamental goal of financial management is to maximize the firm's value, and the value of any asset is the value of its expected future cash flows. One can solve for either the interest rate or the number of periods using the PV and the P equations. The easiest way to solve for these variables is with a financial calculator or a