Computational Notes:

The present value is computed using the following formula:

      PV = P / ((1 + r)^n - 1)

Where:

PV = Present Value

P = Periodic Payment

r = Discount Rate / 100

n = Payment Period

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.