Where $PV$ represents the present value of a future value $FV,N$ time periods from now, at an interest rate of I.

The process of calculating a prosent value from a future value $($as well as the interest rate and periods$)$ is referred to as discounting. The process of discounting is essentiblly the reverse of compounding $($whereby you compute a future value from a present value$).$ As is the case with compounding. discounting can be done via a step$-$by$-$step approach, a formula approach, using spreadsheet software $($such as excel$),$ and using a financial calculator, In the next stage of this problem, you will use a financial calculator to calculate present values in different scenarios.

According to the formula for calculating present values, an increase in the number of time periods $(N)$ will $($all else equal$).$ the present value amount