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Overview

Engineering reference data for Discount Rate in economics.

Key Formulas

Present Value

$PV = \frac{FV}{(1+r)^n}$

Discount a future value to present.

Net Present Value

$NPV = \sum_{t=0}^{n} \frac{C_t}{(1+r)^t}$

Sum of discounted cash flows.

Compound Interest

$FV = PV(1+r)^n$

Future value with compound interest.

Variables

Symbol	Description	Unit
$PV$	Present value	$
$FV$	Future value	$
$r$	Interest/discount rate	—
$n$	Number of periods	years

References

• Original Source