You can use the following template to calculate the Present Value using Python:
FV = Future Value r = Interest Rate n = Number of Periods PV = FV/(1+r/100)**n print (PV)
Steps to Calculate the Present Value using Python
Step 1: Gather your Data
To start, you’ll need to gather the data for the Present Value calculation.
For example, let’s say that you collected the following data:
- Future Value (FV) = 1000
- Interest Rate (r) = 4%
- Number of Periods (n) = 7
Step 2: Calculate the Present Value
Next, you can use the template below in order to calculate the Present Value in Python:
FV = Future Value r = Interest Rate n = Number of Periods PV = FV/(1+r/100)**n print (PV)
This is the complete Python code that you may use for our example:
FV = 1000 r = 4 n = 7 PV = FV/(1+r/100)**n print (PV)
Run the code in Python and you’ll get the PV of 759.917