LCM calculator

Present Value for Continuous Compounding Calculator

Financial Chemistry Engineering Health More >>

↳

Financial Accounting Banking Business Common Probability Distribution More >>

⤿

Time Value of Money Financial Accounting Capital Budgeting Cash Management More >>

⤿

Present Value Basics of Time Value of Money Future value

✖Future Value is the calculated future value of any investment.ⓘ Future Value [FV]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n_Periods]			+10% -10%

✖Present Value with Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding.ⓘ Present Value for Continuous Compounding [PV_cc]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Present Value Formulas PDF PDF Image

Present Value for Continuous Compounding Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
PV_cc = FV/(e^(r*n_Periods))
This formula uses 1 Constants, 4 Variables

Constants Used

e - Napier's constant Value Taken As 2.71828182845904523536028747135266249

Variables Used

Present Value with Continuous Compounding - Present Value with Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding.
Future Value - Future Value is the calculated future value of any investment.
Rate per Period - The Rate per Period is the interest rate charged.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

STEP 1: Convert Input(s) to Base Unit

Future Value: 33000 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PV_cc = FV/(e^(r*n_Periods)) --> 33000/(e^(0.05*2))

Evaluating ... ...

PV_cc = 29859.6347951867

STEP 3: Convert Result to Output's Unit

29859.6347951867 --> No Conversion Required

FINAL ANSWER

29859.6347951867 ≈ 29859.63 <-- Present Value with Continuous Compounding

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Time Value of Money » Present Value » Present Value for Continuous Compounding

Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 100+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< Present Value Calculators

Present Value of Future Sum given compounding periods

LaTeX Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)

Present Value of Annuity

LaTeX Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

LaTeX Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value of Future Sum given Total Number of Periods

LaTeX Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Present Value for Continuous Compounding Formula

LaTeX Go

Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
PV_cc = FV/(e^(r*n_Periods))

What is Present Value for Continuous Compounding ?

The present value with continuous compounding is a concept in finance that calculates the current value of a future sum of money when interest is compounded continuously over time. The formula for continuous compounding is expressed as PV = FV / e^(rt), where PV represents the present value, FV is the future value, r is the annual interest rate (expressed as a decimal), t is the time period in years, and e is Euler's number (approximately 2.71828). This formula accounts for the fact that interest is added to the principal continuously rather than at discrete intervals. Continuous compounding is particularly useful in financial modeling and calculations where precision in estimating present values is important, such as in the valuation of investments or the determination of loan payments.

How to Calculate Present Value for Continuous Compounding?

Present Value for Continuous Compounding calculator uses Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)) to calculate the Present Value with Continuous Compounding, The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding. Present Value with Continuous Compounding is denoted by PV_cc symbol.

How to calculate Present Value for Continuous Compounding using this online calculator? To use this online calculator for Present Value for Continuous Compounding, enter Future Value (FV), Rate per Period (r) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Present Value for Continuous Compounding calculation can be explained with given input values -> 29859.63 = 33000/(e^(0.05*2)).

FAQ

What is Present Value for Continuous Compounding?

The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding and is represented as PV_cc = FV/(e^(r*n_Periods)) or Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)). Future Value is the calculated future value of any investment, The Rate per Period is the interest rate charged & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate Present Value for Continuous Compounding?

The Present Value for Continuous Compounding is the current worth of a future amount of money, calculated using continuous interest compounding is calculated using Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods)). To calculate Present Value for Continuous Compounding, you need Future Value (FV), Rate per Period (r) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Future Value, Rate per Period & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search