Present value and future value

In the formula M = P. (1 + i)no , the main P is also known as Present value (PV = present value) and the amount M is also known as Future Value (PV = future value).

So this formula can be written as:

PV = PV. (1 + i)no

Isolating PV in the formula we have:

PV = FV / (1 + i)no

On the HP-12C calculator, the present value is represented by the PV key. With this same formula, we can calculate the future value from the present value.


How much will we have 12 months from now if we apply $ 1,500 at 2% per month?


FV = 1500. (1 + 0.02)12 = $ 1,902.36