This Technology Workshop illustrates how to leverage a number of functions to perform calculations in Excel involving the time value of money.

Since an annuity’s present value depends on how much money you expect to receive in the future, you should keep the time value of money in mind when calculating the present value of your annuity.

How to calculate the present value of an ordinary annuity Present value of an annuity refers to how much money must be invested today in order to guarantee the payout you want in the future.

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 ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples.

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

Learn what Value at Risk is, what it indicates about a portfolio, its pros and cons, and how to calculate the VaR of a portfolio using Microsoft Excel.

Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this ...