The present value of a growing annuity formula calculates the current, present day, value of a series of future periodic payments that are growing at a proportionate rate. Put simply, a growing annuity is a series of payments that increase in amount with each payment. The payments are made … Read More about Present Value of Growing Annuity Formula

## Present Value of Growing Perpetuity Formula

The present value of growing perpetuity formula is used to derive the present value of a series of cash flows that are generated by an investment in the future. These payments are expected to be made on predetermined future dates and in predetermined amounts. For example, if the rate of growth is … Read More about Present Value of Growing Perpetuity Formula

## Real Rate of Return Formula

The real rate of return formula calculates the annual return on an investment that takes inflation into account. Adjusting nominal rate of return to price changes on the market allows evaluating the effective return on the investment. How to calculate real rate of return? For a quick … Read More about Real Rate of Return Formula

## Present Value of Annuity Due Formula

The Present Value of Annuity Due formula is used to calculate the present value of a series of cash flows, or periodic payments, that are generated by an investment in the future. These payments are expected to be made on predetermined future dates and in predetermined amounts. Present Value of … Read More about Present Value of Annuity Due Formula

## Future Value of Annuity Formula

The future value of annuity formula is used to calculate the value of a series of periodic payments at a future date. This can be useful in determining how much you would have in future if you know how much you’re able to invest per period. It can also be helpful to compute the total cost of a … Read More about Future Value of Annuity Formula

## Annuity Payment Formula

The annuity payment formula is used to calculate the regular payment on an annuity - a series of payments received at a future date. This is the exact same formula used in loan payments. Where P = the payment, PV = the present value, r = the rate per loan period, and n = the number of … Read More about Annuity Payment Formula

## Weighted Average Formula

A weighted average is the average value of a set of numbers, with different levels of relevance. This relevance of each number is referred to as its weight, and is represented as a percentage of the total relevancy. All weights in a weighted average formula calculation should be equal to 100%, or … Read More about Weighted Average Formula

## Present Value Formula

Present Value (PV) formula refers to the exact numerical method to calculate present value of an asset or capital owned in future. The present value is often known as discounted value. Where PV = Present Value, CF is Cash Flow at period 1, r is the rate of interest or return, and n is the … Read More about Present Value Formula

## Perpetuity Formula

What Is Perpetuity? A Perpetuity is an endless consistent series of payments made at equal intervals of time. Said differently, a Perpetuity, or a perpetual annuity, is an infinite stream of cash flow payments. How to Calculate the Present Value of Perpetuity? There are two basic … Read More about Perpetuity Formula

## Present Value of Annuity Formula

What is Present Value of Annuity? The present value of annuity formula calculates the value of a series of payments at a given time. It relies on the concept of the time value of money (i.e one dollar today is worth more than one dollar at a future date). Where P is Periodic Payment, r is … Read More about Present Value of Annuity Formula