Using a Present Value Table (HSC SSCE Mathematics Standard): Flashcards

Lump sum needed today to match future regular payments' value

Equal payments made at regular intervals

$PV = \text{intersection value} \times \text{payment amount}$

$PV = \frac{FV}{(1 + r)^n}$

Determine time period and rate of interest

Pre-calculated value where row and column meet

Divide annual interest rate by 12

Multiply number of years by 4

$PMT = \frac{PV}{\text{intersection value}}$

PV is always less than FV due to interest earned over time