Imagine investing $1,000 on Oct. 1 instead of Oct. 31 — it gains ... ordinary annuity with payments at the end. The formula for the present value of an annuity due is: So the present value ...

But you can also calculate future value (FV) and present value (PV) by hand. For future value, the formula is: Below is a list of the most common areas in which people use net present value ...

Net present ... with (1+r) raised to the number of years in the future a cash flow is projected. The "T" exponent in the denominator of this NPV equation is core to the time value of money concept ...