# Present Value (PV) formula doubt

Submitted by YogSam on Thu, 02/19/2015 - 13:29

PV = FV / (1+r) to the power of n

r is the interest rate and n is the number of period.

What if the n is 1 year and interest rate is given as 10% **semiannually**.

Do we take these values as is and use in the above formula

OR

we do some modifications as the preiod (n) is given as yearly and interest (r) is given as semianually.

Thanks

Yogesh

Forums:

sinosino

Fri, 02/20/2015 - 03:58

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## If it's semiannually@10%,

If it's semiannually@10%, then it will be

PV = FV / (1+5%) to the power of 2