Tag: TVM formula

Nominal Interest Rate Formula

The nominal rate formula calculates the nominal rate of interest for a year based on an effective rate (r), with compounding taking place a number of times a year (m).

Last modified October 17th, 2022 by Michael Brown
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Effective Interest Rate Formula

The effective interest rate formula calculates the rate of interest for a number of compounding periods (n) based on a nominal rate (i) compounded a number of times a year (n).

Last modified January 16th, 2023 by Michael Brown
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future value of a growing annuity formula

Future Value of a Growing Annuity Formula

The future value of a growing annuity formula is used to calculate the value at the end of period n of a series of periodic payments which increase or decrease at a constant rate each period. The payments made at the end of each period, and a discount rate i% is applied.

Last modified January 17th, 2020 by Michael Brown
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present value of a growing annuity formula

Present Value of a Growing Annuity Formula

The present value of a growing annuity formula is used to calculate the present value of a series of periodic payments which increase at a constant rate each period. The payments made at the end of each period, and a discount rate i% is applied.

Last modified February 24th, 2023 by Michael Brown
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present value of annuity due formula

Present Value of Annuity Due Formula

The present value of an annuity due formula is used to calculate the present value of a series of periodic payments. The payments are for the same amount, made at the start of each period, and a discount rate i% is applied.

Last modified February 22nd, 2023 by Michael Brown
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mirr formula

MIRR Formula

The MIRR formula is used to calculate the rate of return for a project taking into account the finance cost (f) of the cash used to fund the project (negative cash flows), and the rate of return (r) on cash from the project (positive cash flows) reinvested elsewhere.

Last modified September 19th, 2019 by Michael Brown
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annuity payment formula FV

Annuity Payment Formula FV

This annuity payment formula FV calculates the annuity payment required to provide a given future value FV. The annuity formula assumes payments are made at the end of each period for n periods, and a discount rate i is applied.

Last modified February 17th, 2023 by Michael Brown
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annuity payment formula PV

Annuity Payment Formula PV

This annuity payment formula PV calculates the annuity payment required to provide a given value today PV (present value). The annuity formula assumes payments are made at the end of each period for n periods, and a discount rate i is applied.

Last modified February 6th, 2023 by Michael Brown
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effective annual rate formula

Effective Annual Rate Formula

The effective interest rate formula calculates the rate of interest for a year based on a nominal rate (i) compounded a number of times a year (m). The formula for annual interest rate is sometimes referred to as the annual equivalent rate formula or AER formula.

Last modified February 7th, 2023 by Michael Brown
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present value of a growing perpetuity formula

Present Value of a Growing Perpetuity Formula

The present value of a growing perpetuity formula is used to calculate the present value of a series of periodic payments which increase at a constant rate each period. The payments made at the end of each period, continue forever, and have a discount rate i% is applied.

Last modified March 9th, 2023 by Michael Brown
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