# Calculate present value of future value

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• # Calculate present value of future value

Hi,

I need to do a business rule on a model for calculating a measure (amount) from present value (including inflation) to present value (excluding inflation). It has to be a rule on the model.

I can't really find any support for this.

The formula is fairly simple : PV = FV/(1+R)n

PV = present value
FV = future value
R = Inflation
n = number of years (so if a value is 5 years from now - n is 5)

The problem is the "raised to the power". Here the is a formula EXP(number) - which is support in rules - but i can not find any examples on how to use it...

Any help would be appreciated regards
Jorgen
• what about "POWER()" ?

POWER(number, power)

Returns the result of a number raised to a power.

POWER(2,9) = 512
laloune

Post hoc, non est propter hoc
• Hi,

it worked with the power formula. Thank you. Then my next challenge is how to deduct to 2 dimension value from each other

So i have "Base Year", which is the year the budget is done. So if the budget is done for 2020 - base year is 2020.

Then the budget is multiple years - which is "Time". So time is 2020, 2021, 2022, 2023 etc.

The "Power" is the difference between "Time"-"Base Year".

Power = "Time"-"Base Year".

So the power is 0 in 2020 (2020-2020) and power is one in 2021 (2021-2020).

Regards
jorgen