What would you like to understand?

The present value is $55,839.48. This is calculated by discounting the future value of $100,000 back 10 years using the formula$PV = $\frac{FV}{(1+r)^n}$$, where$$r = 0.06$$and$$n = 10$$.

Conditions: The future value FV is $100,000.; The annual interest rate r is 6% (0.06).; The number of periods n is 10 years.; Compounding is annual.

The present value is $55,839.48. This is calculated by discounting the future value of $100,000 back 10 years using the formula$PV = $\frac{FV}{(1+r)^n}$$, where$$r = 0.06$$and$$n = 10$$.

Conditions: The future value FV is $100,000.; The annual interest rate r is 6% (0.06).; The number of periods n is 10 years.; Compounding is annual.

The future-value formula $FV = PV(1+r)^n$ is rearranged by dividing both sides by the growth factor $(1+r)^n$. This isolates PV on one side, resulting in the present-value formula $PV = \frac{FV}{(1+r)^n}$.

Conditions: The original formula $FV = PV(1+r)^n$ holds true.; $(1+r)^n$ is not zero (which is true for standard positive interest rates).

The future-value formula $FV = PV(1+r)^n$ is rearranged by dividing both sides by the growth factor $(1+r)^n$. This isolates PV on one side, resulting in the present-value formula $PV = \frac{FV}{(1+r)^n}$.

Conditions: The original formula $FV = PV(1+r)^n$ holds true.; $(1+r)^n$ is not zero (which is true for standard positive interest rates).