Present value of 1 table

A present value of 1 table states the present value discount rates that are used for various combinations of interest rates and time periods. A discount rate selected from this table is then multiplied by a cash sum to be received at a future date, to arrive at its present value. The interest rate selected in the table can be based on the current amount the investor is obtaining from other investments, the corporate cost of capital, or some other measure.

Thus, if you expect to receive a payment of $10,000 at the end of four years and use a discount rate of 8%, then the factor would be 0.7350 (as noted in the table below in the intersection of the "8%" column and the "n" row of "4". You would then multiply the 0.7350 factor by $10,000 to arrive at a present value of $7,350.

A present value of 1 table that employs a standard set of interest rates and time periods appears next.

Present Value of 1 Table

n 1% 2% 3% 4% 5% 6% 8% 10% 12%
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929
2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8573 0.8265 0.7972
3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.7938 0.7513 0.7118
4 0.9610 0.9239 0.8885 0.8548 0.8227 0.7921 0.7350 0.6830 0.6355
5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.6806 0.6209 0.5674
6 0.9421 0.8880 0.8375 0.7903 0.7462 0.7050 0.6302 0.5645 0.5066
7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.5835 0.5132 0.4524
8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5403 0.4665 0.4039
9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5003 0.4241 0.3606
10 0.9053 0.8204 0.7441 0.6756 0.6139 0.5584 0.4632 0.3855 0.3220
11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4289 0.3505 0.2875
12 0.8875 0.7885 0.7014 0.6246 0.5568 0.4970 0.3971 0.3186 0.2567
13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.3677 0.2897 0.2292
14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3405 0.2633 0.2046
15 0.8614 0.7430 0.6419 0.5553 0.4810 0.4173 0.3152 0.2394 0.1827
16 0.8528 0.7285 0.6232 0.5339 0.4581 0.3937 0.2919 0.2176 0.1631
17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.2703 0.1978 0.1456
18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2503 0.1799 0.1300
19 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2317 0.1635 0.1161
20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2146 0.1486 0.1037
21 0.8114 0.6598 0.5376 0.4388 0.3589 0.2942 0.1987 0.1351 0.0926
22 0.8034 0.6468 0.5219 0.4220 0.3419 0.2775 0.1839 0.1229 0.0826
23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.1703 0.1119 0.0738
24 0.7876 0.6217 0.4919 0.3901 0.3101 0.2470 0.1577 0.1015 0.0659
25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1460 0.0923 0.0588