Present value is the opposite of future value (FV). Given $1,000 today, it will be worth $1,000 plus the return on investment a year from today. That's future value.
If you are schedule to receive $10,0000 a year from today, what is its value today, assuming a 5.5% annual discount rate? The "annual discount rate" is the rate of return that you expect to receive on your investments. This is a personal number. There is no "right" answer, though you want to use a realistic number based on your investment history. The discount rate will vary from individual to individual.
Enter $10,000 as the future value (never type the currency symbol or commas), set the start date and end date for one year's duration and set the discount rate to 5.5%. Assume monthly compounding and a 365 day year.
The PV is $9,466.04. You could accept $9,466.04 today in lieu of $10,000 in a year. The two amounts are equal.
Date Math: If you change either date, the number of days between the two dates will be calculated. If you enter a positive number of days, the future value date will be updated. If you enter a negative number of days the present value date will be updated.