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
Time Value of Money
London Interbank Offered Rate (LIBOR) – All You Need to Know
London Interbank Offered Rate (LIBOR) is the most popular interest rate benchmark that financial institutions use globally. Financial institutions, such as banks, use LIBOR… 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
Types of Interest Rates
Interest Rates: MeaningThe Rate at which the investors receive their returns on investment or the rate at which borrowers are to pay for their… 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
Earnings Credit Rate (ECR) – Meaning, Features, Benefits and More
Earnings Credit Rate or ECR is the interest that a bank gives to the customers in the form of a discount. Banks calculate ECR… Read Article
Discounted cash flow
Meaning of Discounted Cash FlowDiscounted cash flow analysis uses forecasted cash flows of a company to discount them to its present value. It makes… 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
Discount Factor Formula – How to Use, Examples and More
In the financial world time value of money is one of the essential criteria to ascertain and decide the projects or investments. The discount… Read Article