# Finite Math Examples

, ,

Step 1

Present value is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk.

Step 2

Substitute the values into the formula.

Step 3

Step 3.1

Simplify .

Step 3.1.1

Simplify the denominator.

Step 3.1.1.1

Convert to a decimal.

Step 3.1.1.2

Add and .

Step 3.1.1.3

Raise to the power of .

Step 3.1.2

Divide by .