how do you calculate present value 
present value is calculated using three data points the expected future value the interest rate that the money might earn between now and then if invested and number of payment periods such as one in the case of a one year annual return that doesn t compound with that information you can calculate the present value using the formula present value fv 1 r nwhere fv future valuer rate of returnn number of periods begin aligned text present value dfrac text fv 1 r n textbf where text fv text future value r text rate of return n text number of periods end aligned present value 1 r nfv where fv future valuer rate of returnn number of periods 