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As with the present value of an annuity, you can calculate the future value of an annuity by turning to an online calculator, formula, spreadsheet or annuity table. You’ll need this information: ...
How to calculate the present value of an ordinary annuity Present value of an annuity refers to how much money must be invested today in order to guarantee the payout you want in the future.
Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...
Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...
Present Value of a Perpetuity = Annual Payment Discount Rate Suppose that you own a perpetual bond that promises to pay you $500 each year. You believe the borrower is creditworthy, and thus think ...
Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...
Knowing how to calculate your portfolio's returns is essential to becoming a savvier investor. Learn the basic principles ...
To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...
You can use an online calculator to figure the present and future value of an annuity.