Understanding the current value of a future sum of money is crucial for financial planning. The Present Value Calculator simplifies this process, allowing users to determine the present worth of an investment based on future projections.

**Formula:** The present value (PV) is calculated using the formula: ��=��(1+�100)�*P**V*=(1+100*r*)*n**F**V* Where:

- ��
*P**V*is the present value, - ��
*F**V*is the future value, - �
*r*is the interest rate per period, and - �
*n*is the number of periods.

**How to Use:**

- Enter the future value of the investment.
- Input the interest rate as a percentage.
- Specify the number of years the investment will be held.
- Click the “Calculate” button to obtain the present value.

**Example:** Suppose you have a future value of $5,000, an interest rate of 6%, and plan to invest for 3 years. The calculated present value would be displayed once you click the “Calculate” button.

**FAQs:**

*What is present value?*- Present value is the current worth of a future sum of money, discounted at a specific interest rate.

*Why is present value important?*- It helps individuals and businesses make informed financial decisions by evaluating the current value of future cash flows.

*Can the calculator handle decimal values?*- Yes, the calculator supports decimal values for future value, interest rate, and number of years.

*What if the future value is negative?*- The calculator considers future value as a positive quantity; users should input negative values if applicable.

*Is the interest rate per annum or per period?*- Input the interest rate as a percentage per period, whether it’s annually, monthly, or another period.

**Conclusion:** The Present Value Calculator streamlines the process of determining the present value of investments, empowering users to make informed financial decisions. Use this tool for accurate and efficient financial planning.