# Time Value of Money (TVM) Calculator

## Present Value Calculator - Future Value Calculator

### Usage of Time Value of Money Calculator

Time value of money calculator's usage is simple. Just leave the one you want to calculate and fill the others. Then click the button of the one you want to calculate.

### Definitions - Time Value of Money (TVM)

#### Time Value of Money

We can simply define time value of money as the difference in the money's value today and future.

#### Future Value (FV)

Future value (FV), as it can be understood from its name, is the asset's value at a specific time [1].

#### Present Value (PV)

The value of an asset at the present time is called as present value (PV) [2].

### Time Value of Money Formulas

Let

$FV =$ Future Value,
$PV =$ Present Value,
$N =$ Period
$PMT =$ Payment
$I/Y =$ = Annual Rate
$i =$ Interest Rate per Period,

$t = 1$, if payment made at the beginning of the period.
$t = 0$, otherwise.

We have

#### PMT Formula - How to Calculate PMT

N can be derived similarly and I/Y can be computed using numerical methods.

### Examples

Example 1

Input

Present Value = 10000
Interest Rate = 5%
Period = 3
Payment = 0

Output

Future Value = 11576.25

Example 2

Input

Present Value = 1000
Interest Rate = 6%
Period = 10
Payment = 100
Frequency = Annually
Mode = BEG

Output

Future Value = 3188.012

### References

1. Time value of money (n.d.). Retrieved June 13, 2017, from https://en.wikipedia.org/wiki /Future_value

2. Future and Present Values (n.d). Retrieved June 13, 2017, from http://www.flinders.edu.au/ slc_files/Documents/Red%20Guides/ Future%20and%20Present%20Values.pdf