Business Finance Online

Time Value of Money Calculator: Introduction


The Time Value of Money Calculator can be used to perform many time value of money related calculations including the calculation of the Present Value or Future Value of a single cash flow or annuity, the Annuity Payment given the Present or Future Value of the annuity, and the Nominal Rate which an investment must earn to grow to a Future Value in a specified number of Periods. The calculator works similarly to the Time Value of Money functions of the Texas Instruments BA II Plus calculator.

  1. Present Value Field - The Present Value is displayed or entered in this field.
  2. Payment Field - The Annuity Payment is displayed or entered in this field.
  3. Future Value Field - The Future Value is displayed or entered in this field.
  4. Nominal Rate Field - The Nominal Interest Rate is displayed or entered in this field.
  5. Periods Field - The number of Periods is displayed or entered in this field. When the Future Value is non-zero the number displayed in this field represents the number of periods in the future in which the Future Value occurs. When the Payment Field is non-zero the number displayed in this field represents the number of annuity payments.
  6. Compounding Field - The value selected in this pop-up represents the Compounding Frequency of the Nominal Interest Rate. For Annuities, it also represents the Frequency of the Annuity Payments.
  7. Buttons - Press these buttons to calculate the corresponding value.
    • PV Button - Press to calculate the Present Value.
    • PMT Button - Press to calculate the Annuity Payment.
    • FV Button - Press to calculate the Future Value.
    • Rate Button - Press to calculate the Nominal Interest Rate.
    • Periods Button - Press to calculate the Number of Periods.


Now you are ready to use the Time Value of Money Calculator.

 

© 2002 - 2010 by Mark A. Lane, Ph.D.