present value refers to the present value of a certain amount of cash at a certain point in the future, commonly known as "principal". Usually recorded as p. Present value, also called discounted value, is used to reflect the intrinsic value of investment.

future value, also called future value or sum of principal and interest, refers to the value of a certain amount of funds at a certain point in the future. Usually recorded as F.

present value formula

p/a = 1/I-1/[I (1+I) n]

(I stands for the rate of return, n stands for the number of periods, p stands for the present value, and a stands for the annuity)

Economists often use discounted values to calculate and represent the difference between a dollar in the future and a dollar today. The discount rate used to calculate the discount value is similar to the bank interest rate. If the discount rate is 5%, it means that 15 yuan after one year is equivalent to 1 yuan at present, or that 1 yuan after one year is only equivalent to 95.24 yuan at present.

final value: simple interest final value formula:? : final value; : present value; : interest rate (discount rate); : Number of interest periods

Reference: Present Value-Baidu Encyclopedia