qfinbox.tvm.basic.present_value

qfinbox.tvm.basic.present_value(future_value: float, rate: float, periods: int, compounding_frequency: int = 1) → float

Calculate present value of a future amount.

Parameters:

• future_value (float) – Future value amount.

• rate (float) – Annual interest rate (as decimal).

• periods (int) – Number of periods.

• compounding_frequency (int, default 1) – Number of times interest is compounded per period.

Returns:

Present value.

Return type:

float

Examples

>>> present_value(1628.89, 0.05, 10)
1000.0