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Compound interest

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

Rule of 72 (estimating an investment's doubling time)

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

Future value of a present sum

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

Present value for Gradient payment

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

Straight-line depreciation method

In financial accounting, an asset is an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value ... more

Future value for Gradient payment

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

Present value of a perpetuity (Present Value of Int Factor Annuity)

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

Discounting

Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a ... more

Periodic compounding

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

Tax amortization benefit factor

In Valuation (finance), tax amortization benefit (or tax amortisation benefit) refers to the present value of income tax savings resulting from the tax ... more

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