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AJ PHP Software Source Code Financial Library
Present Worth
Single Payment Present Worth Factor

number present_worth_SPPWF ( number, number, number )


present_worth_SPPWF returns the present value given future worth, interest rate and number or periods.

present value

Source Code:

function present_worth_SPPWF ($future_worth, $interest_rate, $number_of_years)
  //variable and initializations
  $the_result = 0.0;
  $SPPWF = 0.0;

  //calculate present value with the
  //single payment present worth factor
  $SPPWF = 1.0 / pow(1.0 + $interest_rate, $number_of_years);
  $the_result = $future_worth * $SPPWF;

  //return the value
  return $the_result;


include ("ajfinancial.php");

$future_value = 100.00; //100 dollars
$interest_rate = 0.06; //6 percent interest
$years = 2; //2 years

$present_value = present_worth_SPPWF($future_value, $interest_rate, $years);

echo "future value = $future_value<br>";
echo "interest rate = $interest_rate<br>";
echo "years = $years<br>";
echo "present value = $present_value<br>";

Run Example

percent interest rate percent interest rate
simple interest simple interest
future worth SPCAF future worth
single payment compound amount factor
present worth SPPWF present worth
sing payment present worth factor

References - Books:
Leland T. Blank and Anthony J. Tarquin.r. 1989. Engineering Economy. McGraw-Hill, Inc.
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