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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

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

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

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

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

An annuity is a series of payments made at fixed intervals of time. An annuity-due is an annuity whose payments are made at the beginning of each period. ... more

For periodic compounding, the exact doubling time for an interest rate of r per period is a logarithmic formula, that can be used if we want to know the ... 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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