The formula for the present value of an annuity due is: So the present value you’d need to invest today to cover five $1,000 payments, assuming a 5 percent interest rate, would be about $4,545.95.

The principal amount, the annual interest rate, and the number of compounding periods are used to calculate the compound interest on a loan or deposit. The formula to calculate compound interest ...

The present value interest factor is now ((1 + 8 ... Formula? The CAPM formula is: Expected return = Risk-free rate + (Beta x Market risk premium) CAPM is key to calculating the weighted average ...

If you are confused by personal finance terms, jargon and calculations, heres a series to simplify and deconstruct these for ...

That’s what we are discussing today: Two helpful Excel formulas that are often overlooked outside the office. More ...

Future value represents the worth of a current asset, investment, or cash flow at a specific date in the future based on an assumed rate of growth. It’s the opposite of present value ...

Over the years, the Bank of Canada has adjusted the way it sets its key interest rate. Following is a brief history of the key rate from the Bank’s founding in 1935 until the present. The original key ...

The Single Payment Present Worth (SPPW) formula determines the present value of a future amount after so many years, at a specified interest rate. The present value of a spare part worth $1,079.46, 10 ...

The formula to calculate the coupon rate of a bond is: Coupon Rate = (Annual Coupon Payment / Face Value of Bond) * 100 Let’s say you want to buy a Rs 1,000 bond that pays Rs 40 in interest ...