I would like to summarize these two equations.

The first one, which is we call it the future value.

The future value of any value you borrowed, or you borrowed or

loaned, at n number of years will be F will be equal to the P,

that amount which P here we refer to as present value

times the 1+i, the interest, to the power of n.

So the interest that you have in the question to the power of the n

number of years that you want to highlight,

what is the future value of that in n number of period of times?

If you want to reverse it, let's say I want to Put in the bank,

or to have in the bank in three or four or five years from now, around $10,000.

How much in the present I want to put in that bank if

I have an interest rate equal to i percent, 2 or 3, 4, 5%?

So from this equation, from the first equation,

you just like to flip the two sides.

So it will be then the present value equal to the future value that you want to find

at the end divided by 1+i to the power of n.