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.

*Example:*

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

*Solution*:

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