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Present Value Formula for a Future Value: PV = FV (1 + r m)mt P V = F V ( 1 + r m) m t. where r=R/100 and is generally applied with r as the yearly interest rate, t the number of years and m the number of compounding intervals per year. We can reduce this to the more general. PV = FV (1 + i)n P V = F V ( 1 + i) n.

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