Present Value for Continuous Compounding Calculator

✖Future Value is the calculated future value of any investment.ⓘ Future Value [FV]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n_Periods]			+10% -10%

✖Present Value with Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding.ⓘ Present Value for Continuous Compounding [PV_cc]

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Present Value for Continuous Compounding

Formula

`"PV"_{"cc"} = "FV"/(e^("r"*"n"_{"Periods"}))`

Example

`"29859.63"="33000"/(e^("0.05"*"2"))`

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Present Value for Continuous Compounding Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
PV_cc = FV/(e^(r*n_Periods))
This formula uses 1 Constants, 4 Variables

Constants Used

e - Napier's constant Value Taken As 2.71828182845904523536028747135266249

Variables Used

Present Value with Continuous Compounding - Present Value with Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding.
Future Value - Future Value is the calculated future value of any investment.
Rate per Period - The Rate per Period is the interest rate charged.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

STEP 1: Convert Input(s) to Base Unit

Future Value: 33000 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PV_cc = FV/(e^(r*n_Periods)) --> 33000/(e^(0.05*2))

Evaluating ... ...

PV_cc = 29859.6347951867

STEP 3: Convert Result to Output's Unit

29859.6347951867 --> No Conversion Required

FINAL ANSWER

29859.6347951867 ≈ 29859.63 <-- Present Value with Continuous Compounding

(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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< 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 for Continuous Compounding Formula

Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
PV_cc = FV/(e^(r*n_Periods))

What is Present Value for Continuous Compounding ?

The present value with continuous compounding is a concept in finance that calculates the current value of a future sum of money when interest is compounded continuously over time. The formula for continuous compounding is expressed as PV = FV / e^(rt), where PV represents the present value, FV is the future value, r is the annual interest rate (expressed as a decimal), t is the time period in years, and e is Euler's number (approximately 2.71828). This formula accounts for the fact that interest is added to the principal continuously rather than at discrete intervals. Continuous compounding is particularly useful in financial modeling and calculations where precision in estimating present values is important, such as in the valuation of investments or the determination of loan payments.

How to Calculate Present Value for Continuous Compounding?

Present Value for Continuous Compounding calculator uses Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)) to calculate the Present Value with Continuous Compounding, The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding. Present Value with Continuous Compounding is denoted by PV_cc symbol.

How to calculate Present Value for Continuous Compounding using this online calculator? To use this online calculator for Present Value for Continuous Compounding, enter Future Value (FV), Rate per Period (r) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Present Value for Continuous Compounding calculation can be explained with given input values -> 29859.63 = 33000/(e^(0.05*2)).

FAQ

What is Present Value for Continuous Compounding?

The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding and is represented as PV_cc = FV/(e^(r*n_Periods)) or Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)). Future Value is the calculated future value of any investment, The Rate per Period is the interest rate charged & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate Present Value for Continuous Compounding?

The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding is calculated using Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)). To calculate Present Value for Continuous Compounding, you need Future Value (FV), Rate per Period (r) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Future Value, Rate per Period & 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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