Time Value of Money

The following formulas concern the value of future or past cash flows when a discount rate is present.

• Present Value of Cash Flows
• Future Value of Cash Flows
• Present Value of Growing Annuity
• Future Value of Growing Annuity
• Present Value of Growing Perpetuity

Present Value of Cash Flows

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Discount rate (r)

Cash flows (C_t)

+ Add Year Calculate

(t=0) PV=

Future Value of Cash Flows

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Discount rate (r)

Cash flows (C_t)

+ Add Year Calculate

(t=n) FV=

Present Value of a Growing Annuity

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Annual cash flow (C)

Discount rate (r)

Growth rate (g)

# years (n)

Calculate

(t=0) PVGA=

Future Value of a Growing Annuity

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Annual cash flow (C)

Discount rate (r)

Growth rate (g)

# years (n)

Calculate

(t=n) FVGA=

Present Value of a Growing Perpetuity

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Annual cash flow (C)

Discount rate (r)

Growth rate (g)

Calculate

(t=0) PVGP=