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What is Time Value of Money Explained about?

1. There are four methods to calculate the future value of an annuity: step-by-step, formula, financial calculator, and Excel spreadsheet. 2. The step-by-step method multiplies each payment by (1+I)N-t and sums the future values. The formula is FVAN = PMT * ((1+I)^N - 1) / I. 3. The financial calculator and Excel spreadsheet use the FV function with the interest rate, number of periods, payment amount, and present value as inputs.

Author

Thu Thao

Language

EN