Capital Recovery Factor – Meaning, Formula, and Example
Capital Recovery Factor (or CRF) is the ratio that helps to find the present values of a series of equal payments. The equal payments… Read Article
Compounding and Discounting
Perpetuity
Meaning of PerpetuityPerpetuity is a never-ending stream of cash flows from an investment in the field of corporate finance. Such cash flows do not… Read Article
Compounding vs Discounting – All You Need to Know
Time Value of Money is an important financial concept and primarily refers to the value of money at different points in time. Two methods… Read Article
Importance of Time Value of Money
Time value of money (TVM) is the most fundamental and important concept in finance. This concept basically means that the money you have at… Read Article
Compounded Annual Growth Rate vs. Internal Rate of Return
Meaning of CAGRThere are various metrics or indicators in the financial world to understand the return and quality of investment returns. Two such metrics… Read Article
Present Value of Uneven Cash Flows
Cash flows represent the inflow of cash for a business. Regular cash flow and proper planning thereof are very crucial for all businesses. However,… Read Article
Periodic Interest Rate: Meaning, Examples, Advantages, Excel Calculation, and More
Periodic Interest Rate: MeaningA Periodic Interest Rate is a rate of interest that is charged or realized for one or more than one time… Read Article
Rule of 69 – Meaning, Benefits, Limitations and More
Rule of 69: MeaningRule of 69 is a general rule that calculates how much time investment or saving would take to double in case… Read Article
Effective Annual Rate (EAR)
Effective Annual RateAn effective annual rate is a return earned or paid on the investment, loan, or other financial product over time. EAR’s other… Read Article
Annuity Formula
Annuity formula as a standalone term could be vague or ambiguous. It can be either ‘present value annuity formula‘ or ‘future value annuity formula.’… Read Article
Simple and Compound Interest – Meaning, Formula and Example
Simple and Compound InterestBefore lending or investing, everyone would like to know the return he will be getting for this facilitation. The return or… Read Article