Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Here’s what you need to know about two terms related to annuities — present value and future value. Present value of an annuity vs. future value of an annuity: What’s the di ...

Microsoft Excel has dozens of preset formulas for many types of mathematical calculations, but compounding interest isn't one of them. To calculate the future value of a single amount compounded ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Amy is an ACA and the CEO and founder of ...

We can use a simple formula to calculate the present value of a perpetuity annuity. This formula will tell us what a perpetuity is worth based on a discount rate, or a required rate of return.

Too many financial decisions are made without factoring in the time value of money. Whether providing financial planning advice related to a client’s retirement, advising a client about a business ...

It’s possible to calculate the present value of an annuity using Excel but you’ll need some information at your fingertips: the annuitization period, the payment amount, and the interest rate.