$
The amount due later.
%
The yearly rate used to discount. It must be above -100%.
How many times a year the rate compounds.
years
In years until the amount is due.
Present value
$14,827
Present value at 6% a year of $20,000 due in 5 years
Discount
$5,173
Future value minus present value
Today (present value)
$14,827
Discount
$5,173
In 5 years (future value)
$20,000

Discounting runs from the future amount back to today: the present value plus the discount makes the future value.

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