What is a guaranteed future payment worth today?

Fusion · RGME 467 · Business & Financial Modeling
Guaranteed payment
$
Years until payment
yrs
Discount rate (risk-free return you give up)
%
Worth today $0
Cost of waiting
Today's value as % of payment

The payment is certain. It is worth less today only because waiting costs you the return your money could earn elsewhere.

Value of the promise at each point until payment

Same promise, different rates