# 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

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