Interest Formulas
Calculate Future Value and Present Value using single cash accumulation formulas with compound interest and discounting processes.
Interest Formulas
Single Cash Accumulation - Future Value
The accumulated value of a present sum invested at a given interest rate after some time:
F = P (1 + i)^n
Where:
- F = Future Value (accumulated value)
- P = Principal (present sum invested)
- i = Interest rate per period
- n = Number of interest periods
Discounting Process - Present Value
The present value of a future cash flow using the discounting process:
P = F / (1 + i)^n
Where:
- P = Present Value
- F = Future cash flow
- i = Discount rate
- n = Number of periods