Say if we were to find the past value of $1 at an interest rate of 5% for the 10 years past today.

If we were to use the present value formula

$\displaystyle PV = \frac{FV}{(1+i)^n}$

where

$\displaystyle FV=1$

$\displaystyle i=0.05$

$\displaystyle n=-10$

$\displaystyle PV = \frac{1}{(1+0.05)^{-10}}$

$\displaystyle PV = \frac{1}{(1.05)^{-10}}$

$\displaystyle PV = (1.05)^{10}$

$\displaystyle PV = 1.62889462677744140625$

It seems like the past value of $1 is kind of like future value of $1

Does this make sense?

To me it kind of does, since a dollar in hand today is worth less than a dollar we had 10 years ago

Would someone here comment on these findings