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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
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
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
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
In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more
Future value is the value of an asset or cash at a specified date in the future, based on the value of that asset in the present. Future value of an ... more
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