Computational Notes:

If the discount rate and the growth rate are not equal, the present value formula is:

    PV = [P / (r -g)] * [1 - ((1 + g) / (1 + r ))^n] * (1 + r)

If the discount rate and the growth rate are equal, the present value formula is:

    PV = [P * n / (1 + r)] * (1 + r) = P * n

Where:

PV = Present Value

P = Payment

r = Discount Rate / 100

g = Growth Rate / 100

n = Number Payments

Adjust the discount rate to reflect the interval between payments which typically are annual, semiannual, quarterly or monthly. For example, for a 6% annual discount rate, enter 6 for an annual interval. Enter 3 for a semiannual interval. Enter 1.5 for a quarterly interval. Enter .5 for a monthly interval.

The discount rate is the same for all payment periods.