Present Value Continuous Compounding Factor Calculator

✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖Total Number of Periods is the total number of compounding periods for the life of the investment.ⓘ Total Number of Periods [t]			+10% -10%

✖PV Continuous Compounding Factor is used to calculate the present value of a future sum with continuous compounding at a specified interest rate over a given time period.ⓘ Present Value Continuous Compounding Factor [F_PV]

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Formula

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Present Value Continuous Compounding Factor

Formula

`"F"_{"PV"} = (e^(-"r"*"t"))`

Example

`"0.67032"=(e^(-"0.05"*"8"))`

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Present Value Continuous Compounding Factor Solution

STEP 0: Pre-Calculation Summary

Formula Used

PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))
F_PV = (e^(-r*t))
This formula uses 1 Constants, 3 Variables

Constants Used

e - Napier's constant Value Taken As 2.71828182845904523536028747135266249

Variables Used

PV Continuous Compounding Factor - PV Continuous Compounding Factor is used to calculate the present value of a future sum with continuous compounding at a specified interest rate over a given time period.
Rate per Period - The Rate per Period is the interest rate charged.
Total Number of Periods - Total Number of Periods is the total number of compounding periods for the life of the investment.

STEP 1: Convert Input(s) to Base Unit

Rate per Period: 0.05 --> No Conversion Required
Total Number of Periods: 8 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

F_PV = (e^(-r*t)) --> (e^(-0.05*8))

Evaluating ... ...

F_PV = 0.670320046035639

STEP 3: Convert Result to Output's Unit

0.670320046035639 --> No Conversion Required

FINAL ANSWER

0.670320046035639 ≈ 0.67032 <-- PV Continuous Compounding Factor

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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BMS College of Engineering (BMSCE), Bangalore

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< 19 Present value Calculators

Present Value of Deferred Annuity

Go Present Value of Deferred Annuity = Ordinary Annuity Payment*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01)^Deferred Periods*(Interest Rate*0.01)))

Present Value of Deferred Annuity based on Annuity Due

Go Present Value of Deferred Annuity = Annuity Payment Due*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01))^(Deferred Periods-1)*(Interest Rate*0.01))

Present Value of Growing Annuity

Go Present Value of Growing Annuity = (Initial Investment/(Rate per Period-Growth Rate))*(1-((1+Growth Rate)/(1+Rate per Period))^(Number of Periods))

Growing Annuity Payment using Present Value

Go Initial Payment = Present Value*((Rate per Period-Growth Rate)/(1-(((1+Growth Rate)/(1+Rate per Period))^Number of Periods)))

Annuity Due for Present Value

Go Annuity Due Present Value = Payment made in Each Period*((1-(1/(1+Rate per Period)^(Number of Periods)))/Rate per Period)*(1+Rate per Period)

Present Value of Future Sum given compounding periods

Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)

Number of Periods using Present Value of Annuity

Go Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)

Present Value of Ordinary Annuities and Amortization

Go Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)

Present Value of Annuity with Continuous Compounding

Go Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))

Present Value of Annuity

Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value for Continuous Compounding

Go Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))

Present Value Factor

Go Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period

Present Value of Stock with Constant Growth

Go Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)

Present Value of Lumpsum

Go Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods

Present Value of Future Sum given Total Number of Periods

Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Present Value Continuous Compounding Factor

Go PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))

PV of Perpetuity

Go PV of Perpetuity = Dividend/Discount Rate

Present Value of Stock with Zero Growth

Go Price of Stock = Dividend/Rate of Return

Present Value Continuous Compounding Factor Formula

PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))
F_PV = (e^(-r*t))

What is Present Value Continuous Compounding Factor ?

The Present Value Continuous Compounding Factor is a crucial component in financial calculations involving continuous compounding. It is used to determine the current worth of a future amount of money when interest is compounded continuously over time.The continuous compounding factor
captures the growth of the investment or sum of money over time under continuous compounding conditions. Taking the reciprocal of this factor provides the multiplier to calculate the present value, aiding in various financial analyses such as investment valuation, loan calculations, and retirement planning.

How to Calculate Present Value Continuous Compounding Factor?

Present Value Continuous Compounding Factor calculator uses PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods)) to calculate the PV Continuous Compounding Factor, The Present Value Continuous Compounding Factor represents the value of a future cash flow discounted at a continuously compounded interest rate. PV Continuous Compounding Factor is denoted by F_PV symbol.

How to calculate Present Value Continuous Compounding Factor using this online calculator? To use this online calculator for Present Value Continuous Compounding Factor, enter Rate per Period (r) & Total Number of Periods (t) and hit the calculate button. Here is how the Present Value Continuous Compounding Factor calculation can be explained with given input values -> 0.67032 = (e^(-0.05*8)).

FAQ

What is Present Value Continuous Compounding Factor?

The Present Value Continuous Compounding Factor represents the value of a future cash flow discounted at a continuously compounded interest rate and is represented as F_PV = (e^(-r*t)) or PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods)). The Rate per Period is the interest rate charged & Total Number of Periods is the total number of compounding periods for the life of the investment.

How to calculate Present Value Continuous Compounding Factor?

The Present Value Continuous Compounding Factor represents the value of a future cash flow discounted at a continuously compounded interest rate is calculated using PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods)). To calculate Present Value Continuous Compounding Factor, you need Rate per Period (r) & Total Number of Periods (t). With our tool, you need to enter the respective value for Rate per Period & Total Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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