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

Present Value

This Flash tutorial walks you through the steps to calculate present value from the future value, interest rate, and number of maturity periods. You can enter your own values, too. Understanding discounting of future values to determine present value is a key concept in understanding the time value of money. The formula for calculating present value is shown here step by step. 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