Time Value of Money Utility
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Topic Summary for Mathematics of Finance More On-Line Utilities Everything for Calculus Everything for Finite Math Everything for Finite Math & Calculus |
To use the utility, fill in any five of the six fields and press "Compute" to obtain the missing quantity.
Note:We use the following convention, similar to that in standard financial calculators, the TI-83, and Excel:
Example | |
FV = Future Value of Annuity | FV = 23000 if you want an account to pay you $23,000 in the future. |
PV = Present Value of Annuity | PV = -5000 if you pay $5,000 into the new account now. |
PMT = Payment | PMT = -100 if you pay $100 into the account at the end of each compounding period. |
r = annual interest rate | r = 5% (or 0.05) if the account pays 5% per year. |
m = number of compounding periods per year | m = 12 if the payments and interest are payed monthly . |
t = number of years | t = 10 if the payments continue for 10 years. |