Calculate present value of future value

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    • Calculate present value of future value


      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 :)

    • 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).