# Present value of future sum

## Input(s)

\(i_{e}\): Effective Interest or Discount Rate Fraction (fraction)

\(\mathrm{t}\): Time (year)

\(F_{v}\): Future Sum Received at Time \(t\) (currency unit)

## Output(s)

\(P_{v}\): Present Value of Future Sum (currency unit)

## Formula(s)

\[
P_{v}=F_{v} *\left(\frac{1}{\left(1+i_{e}\right)^{t}}\right)
\]

## Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 49.