PV or FV?

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Patrice Bryanton
Patrice Bryanton's picture
PV or FV?

as far as I understand, calculations with FV or PV give the same final result. is there any reason PV was chosen over FV? would I be fundamentally wrong to use FV when solving problems in finance? thanks

Jason Pride
Jason Pride's picture

Present value (PV) and future value (FV) are not interchangeable, they are opposite calculations. Present value tells you the value of a future payment today while future value tells you how much a payment today will worth in the future. The values of these two calculation will not be the same.