The present value annuity calculator is used to calculate what a cash sum received at the end of each period for n periods is worth today, taking into account a discount rate i.

# Present Value

## Present Value of a Lump Sum Calculator

## Continuous Compounding

Normally when computing compound interest the compounding period is a discrete interval, annually, quarterly, monthly, weekly etc. There is nothing however to stop the compounding period getting smaller and smaller until eventually interest is calculated on the balance of the principal amount plus accumulated interest on a continuous basis.

## Loan Balance Formula

## NPV and Taxes

The NPV (net present value) of an investment is calculated by adding together the present value of each of the individual cash flows associated with the investment. The purpose of this tutorial is to discuss the effect of taxation and depreciation on each of the investment cash flows and, as a result, on the NPV of the investment itself.