The present value interest factor of an annuity is calculated to compare the real value of a lump sum payment today and the same amount of money paid over time.

How an Annuity Table Works An annuity table provides a factor, based on time, and a discount rate (interest rate) by which an annuity payment can be multiplied to determine its present value. For ...

These sum to $14,260. Thus the present value of $19,250, using our 15 percent discount rate, is $14,260.

In the case of a T-bill, we know our purchase price, or present value, its face value or future value, and how long until it matures. For short-term Treasuries, this duration could be 30 to 182 ...

Summing the projected values and subtracting the initial cash outlay of $15,000 produces a net present value for the project of $3,433.70. Since the NPV number is positive, the project is likely ...

EXECUTIVE SUMMARY IN LITIGATION INVOLVING FUTURE ECONOMIC damages, experts’ calculations must discount the amounts to present value. The courts have offered little guidance on appropriate discount ...

The first step is to subtract the present value from the future value to determine the actual cash return we'll receive over this period. In this case, that works out to $100. Next, divide that ...

In the case of a T-bill, we know our purchase price, or present value; its face value, or future value; and how long until it matures. For short-term Treasuries, this duration could be 30 days to ...