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

Rule of 78

The Rule of 78 is a method of allocating interest charges for the life of a loan. Learn how the Rule of 78s works in this tutorial. Continue reading

Return on Assets

Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets of the company. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement and balance sheet. 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

About Interest Rates and the Time Value of Money

Interest rates are key to understanding the Time Value of Money. This tutorial covers the relevant terminology, including APR, APY, and the yield curve. Continue reading