Find out how much you need to invest today to reach a certain amount in the future.
The exact algebraic inverse of the future value formula.
Present value: Future value ÷ (1 + r)ⁿ
Why would I need to know present value?
It helps you fairly compare amounts of money due at different times. A future payment is worth less than the same amount in hand today, and present value shows you exactly how much less.