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Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

A perpetuity is payments of a set amount of money that occur on a routine basis and continues forever. Present value of a perpetuity is an infinite and ... more

The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the ... more

Rule of 72 is a method for estimating an investment’s doubling time. The rule number 72 is divided by the interest percentage per period to obtain ... more

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

The present value formula can be rearranged logarithmic way to calculate how many years are needed for the value of the deposit to double. ( For the period ... more

A time value of money calculation is one which solves for one of several variables in a financial problem. In a typical case, the variables might be: a ... more

In economics, present value, also known as present discounted value, is a future amount of money that has been discounted to reflect its current value, as ... more

Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is “worth” at a ... more

Future value of an annuity is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest. The ... more

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