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

## Contribution Margin Formula

What is Contribution Margin?Contribution margin represents the incremental profit generated for each product/unit sold.It is a cost accounting calculation that tells a company the profitability of an individual product. The formula for contribution margin is the sale price of the item minus the … Read More about Contribution Margin Formula

## Future Value Formula

What is Future Value?The value of an asset or investment at a specific time or date in future is called Future Value (FV). It is the amount to which an investment or a series of investments will grow by a specified date and time in future and will be received after T years or … Read More about Future Value Formula

## Current Yield Formula

What is the Current Yield formula?The current yield is the annual return of a bond based on the annual coupon payment and current bond price (vs its original price or face).The current yield formula takes into consideration the current price of the bond instead of the face value of the bond. … Read More about Current Yield Formula

## Average Collection Period Formula

What Is Average Collection Period?The Average Collection Period (ACP) is an average number of days between the day of a credit sale and the day the company receives the payment. In other words, it’s a number of days needed to convert receivables into cash. How to Calculate the Average … Read More about Average Collection Period Formula