The purpose of the present value tables is to make it possible to carry out present value calculations without the use of a financial calculator.
They provide the value now of 1 received at the end of period n at a discount rate of i%.
The present value formula is:
PV = FV / (1 + i)n
This can be re written as:
PV = FV x 1 / (1 + i)n
PV tables are used to provide a solution for the part of the present value formula shown in red, this is sometimes referred to as the present value factor.
PV = FV x Present value factor
PV Tables Example
What is the present value of 4,000 received in 14 years time if the discount rate is 8%?
FV = 4,000 n = 14 i = 8% PV = FV /(1 + i)n PV = 4,000 /(1 + 8%)14 PV = 4,000 x 1 / (1 + 8%)14 PV = 4,000 x Present value factor for n = 14, i = 8% PV = 4,000 x 0.3405 PV = 1,362
The present value factor of 0.3405, is found using the tables by looking along the row for n = 14, until reaching the column for i = 8%, as shown in the preview below.
Present Value Tables Download
The PV tables are available for download in PDF format by following the link below.
Present value tables are one of many time value of money tables, discover another at the links below.
Users use these PV tables at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a present value factor table that you might use when considering how to calculate present values. It is purely illustrative of a PV table of 1. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this present value of 1 table, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.