Discounting Future Value

Discounting the future value is the process of figuring out what that future value is in present-day money. Use this tutorial to learn how to calculate the discounted future value given the future value, periodic interest rate, and number of periods. Continue reading

Calculating Future Value

Future value is a term given to the amount of money we would have at some point in the future, based on what happens between now and then. Use this tutorial to learn how to calculate the future value of an annuity given the present value, periodic interest rate, and number of periods. Continue reading

Annuities – Present Value and Future Value

Annuities are defined as a stream of payments made over time. Use this tutorial to learn how to solve present and future value of annuity problems with financial calculators or spreadsheet functions. Continue reading

Compound Interest Made Simple

Compound interest is the method of finding interest where interest is charged on the principal as well as the interest already accumulated. Review a simpler method for finding compound interest with this tutorial. Continue reading

Equity Multiplier

The equity multiplier ratio is the factor by which assets grew from the use of debt. This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

Compound Interest: Bottomless Worksheet

Use this Bottomless Worksheet to get endless practice on Time Value of Money calculations of compound interest from the principal (or present value), number of periods, and interest rate. Ten new problems to solve, a printed copy, and an answer sheet are all only a click away. Continue reading

Compound Interest

Calculating compound interest to determine the time value of money is easy. Learn how to find the interest using present value, number of compounding periods, and interest rate. Use your own values for an added bonus! Continue reading