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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

Days in inventory is an efficiency ratio that measures the average number of days the company holds its inventory before selling it. Cost of goods sold or ... 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

The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the ... 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 Valuation (finance), tax amortization benefit (or tax amortisation benefit) refers to the present value of income tax savings resulting from the tax ... 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

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

Total Shareholder Return (TSR) (or simply Total Return) is a measure of the performance of different companiesâ€™ stocks and shares ... more

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