Future Rent Calculator

Formula

The formula to calculate the Present Value of Future Rent (PVf) is:

\[ PVf = \frac{FV}{(1 + r)^n} \]

Where:

$PVf$ is the Present Value of Future Rent ($)
$FV$ is the future value ($)
$r$ is the rate (%)
$n$ is the number of periods

What is Future Rent Calculation?

Future rent calculation involves determining the present value of rent payments that will be made in the future. This is important for understanding the current worth of future rent payments, taking into account the time value of money.

Example Calculations

Example 1:

Future Value (FV): $10,000
Rate (r): 5%
Number of Periods (n): 10

Using the formula:

\[ PVf = \frac{10,000}{(1 + 0.05)^{10}} \approx 6,139.13 \text{ dollars} \]

Example 2:

Future Value (FV): $5,000
Rate (r): 3%
Number of Periods (n): 5

Using the formula:

\[ PVf = \frac{5,000}{(1 + 0.03)^{5}} \approx 4,310.13 \text{ dollars} \]