Present value

Introduction to R for Finance

Lore Dirick

Manager of Data Science Curriculum at Flatiron School

Time value of money

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Time value of money

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Time value of money

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Time value of money

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Time value of money

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Future value and present value

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Present value - multiple periods

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Present value - multiple periods

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Present value - multiple periods

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Present value - multiple periods

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Present value - multiple periods

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Present value - multiple periods

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Present value - multiple periods

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Present value - multiple periods

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Present value - general formula

82.64 = 100 * (1.10) ^ -2

present_value <- cash_flow * (1 + interest / 100) ^ -periods

cash_flow <- 100
interest  <- 10
periods   <- 2
present_value <- cash_flow * (1 + interest / 100) ^ -periods
present_value

82.64463

Let's practice!

Introduction to R for Finance