13/07/2026
Present Value (PV) is the current worth of a future sum of money.
Future Value (FV) is how much that money will grow into later.
They have an inverse relationship: to find the FV, you "grow" the PV forward with interest. To find the PV, you "shrink" or discount the FV backward.
Think of PV and FV like planting a tree.Present Value is the small seed you plant today.Future Value is the large tree it becomes later.
Money can earn interest. A dollar today is worth more than a dollar tomorrow.