# Present Value Tables

The purpose of the present value tables is to make it possible to carry out present value calculations without the use of a financial calculator.

They provide the value now of 1 received at the end of period n at a discount rate of i%.

The present value formula is:

`PV = FV / (1 + i)n`

This can be re written as:

`PV = FV x 1 / (1 + i)n`

Present value tables are used to provide a solution for the part of the present value formula shown in red, this is sometimes referred to as the present value factor.

`PV = FV x Present value factor`

## Present Value Tables Example

What is the present value of 4,000 received in 14 years time if the discount rate is 8%?

```FV = 4,000
n = 14
i = 8%
PV = FV /(1 + i)n
PV = 4,000 /(1 + 8%)14
PV = 4,000 x 1 / (1 + 8%)14
PV = 4,000 x Present value factor for n = 14, i = 8%
PV = 4,000 x 0.3405
PV = 1,362
```

The present value factor of 0.3405, is found using the tables by looking along the row for n = 14, until reaching the column for i = 8%, as shown in the preview below.

Present value tables are one of many time value of money tables, discover another at the links below.

Notes and major health warnings
Users use these present value tables at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a present value factor table that you might use when considering how to calculate present values. It is purely illustrative of a PV table of 1. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this present value of 1 table, please let us know and we will try to fix it.
Present Value Tables November 6th, 2016

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