The present value annuity calculator is probably the most useful calculator there is to help with annuity investments. The concept of present value used in the present value annuity calculator is very useful but many people are confused by this concept.
Let's first discuss what present value is. In the present value annuity calculator, the present value starts with value on a given date of future annuity payment or, more appropriately, series of future annuity payments. This value is then discounted to reflect the time value for money as other factors. This principal is based on the fact that a dollar today is worth more than a dollar tomorrow.
The present value concept is useful, not only for the present value annuity calculator but for many other financial calculations. Many businesses and financial institutions make use of present value calculators. In real estate investing, investors rely heavily on present value calculators to help them invest in real estate.
The online present value annuity calculator may be sufficient for you to calculate the present value of your annuity payments. However, many people prefer to use the present value annuity calculator offline and they can download the application and install it as a desktop application. If you understand how present value works, you can even calculate it by hand, without using the present value annuity calculator at all.
The present value annuity calculator uses what we call the discount factor to calculate the present value. The discount factor is given the reciprocal of one plus a rate of return. There are a few ways to calculate the discount factor. The present value, given the discount factor is just expected payoff in one year times the discount factor.
The rate of return is also an important factor used in the present value annuity calculator. The rate of return is the reward that investors demand for accepting delayed payment. The rate of return is used in calculating the discount factor.
Sometimes known as the "opportunity cost," the rate of return is an important factor in the calculation of the present value. Sometimes it is even the result that you are looking for, because it indicates exactly what the security that you could invest in will yield.
The present value annuity calculator does not just calculate the present value, it usually can also calculate the net present value. The present value annuity calculator is usually flexible enough for you to specify what type of present value you want to use it for.
Although it is hard to grasp the concept of present value, it is not hard to use the present value annuity calculator. The present value annuity calculator can even display results in simple to understand charts and graphs. The present value annuity calculator is very useful when you try to understand how annuities work. - 15275
Let's first discuss what present value is. In the present value annuity calculator, the present value starts with value on a given date of future annuity payment or, more appropriately, series of future annuity payments. This value is then discounted to reflect the time value for money as other factors. This principal is based on the fact that a dollar today is worth more than a dollar tomorrow.
The present value concept is useful, not only for the present value annuity calculator but for many other financial calculations. Many businesses and financial institutions make use of present value calculators. In real estate investing, investors rely heavily on present value calculators to help them invest in real estate.
The online present value annuity calculator may be sufficient for you to calculate the present value of your annuity payments. However, many people prefer to use the present value annuity calculator offline and they can download the application and install it as a desktop application. If you understand how present value works, you can even calculate it by hand, without using the present value annuity calculator at all.
The present value annuity calculator uses what we call the discount factor to calculate the present value. The discount factor is given the reciprocal of one plus a rate of return. There are a few ways to calculate the discount factor. The present value, given the discount factor is just expected payoff in one year times the discount factor.
The rate of return is also an important factor used in the present value annuity calculator. The rate of return is the reward that investors demand for accepting delayed payment. The rate of return is used in calculating the discount factor.
Sometimes known as the "opportunity cost," the rate of return is an important factor in the calculation of the present value. Sometimes it is even the result that you are looking for, because it indicates exactly what the security that you could invest in will yield.
The present value annuity calculator does not just calculate the present value, it usually can also calculate the net present value. The present value annuity calculator is usually flexible enough for you to specify what type of present value you want to use it for.
Although it is hard to grasp the concept of present value, it is not hard to use the present value annuity calculator. The present value annuity calculator can even display results in simple to understand charts and graphs. The present value annuity calculator is very useful when you try to understand how annuities work. - 15275
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