# Finite Math Examples

, ,

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.

Reorder and .

Substitute the values into the formula.

Simplify the denominator.

Convert to a decimal.

Add and to get .

Remove parentheses around .

Raise to the power of to get .

Divide by to get .