The present value of f dollars at interest rate r% compounded annually for n years is the amount of money that must be invested now in order to grow to f dollars (called the future value) in n years where the interest rate is r% per year. The formula for present value is f present value = f/(1 + r /100 )^n

Calculate the present value of an investment after the user enters the future value, interest rate, and number of years. Figure 2.28 shows that at 4% interest per year, $7,903.15 must be invested now in order to have $10,000 after 6 years.

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