Present Value Calculator User Guide

Introduction

The Present Value Calculator is a financial tool designed to help you calculate the present value of a future sum of money, considering a discount rate and investment duration. This calculator is useful for evaluating the current worth of an investment or cash flow.

How to Use

1. Enter Future Value (Rs.): Input the future value of the investment or cash flow that you want to calculate the present value for.
2. Enter Discount Rate (%): Provide the discount rate, representing the rate of return or interest rate used to discount future cash flows to their present value.
3. Enter Investment Duration (years): Specify the number of years over which the investment will occur or the cash flow will be received.
4. Click Calculate: Press the “Calculate” button to compute the present value based on the provided inputs.
5. View Results: The calculator will display the present value result below the button.

Example

Suppose you have a future value of Rs. 5000, a discount rate of 5%, and an investment duration of 3 years.

1. Enter Future Value: 5000
2. Enter Discount Rate: 5
3. Enter Investment Duration: 3
4. Click Calculate

The calculator will then display the present value, giving you the current worth of the future sum.