An annuity is a capital investment that pays out a fixed sum at regular intervals over an agreed period. A simple calculation illustrates how the fund will grow over the specified term. Typically, ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Marguerita is a Certified Financial Planner (CFP), Chartered Retirement Planning Counselor ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Investopedia / Hilary Allison The present ...

The time value of money sounds like one of those boring economic concepts that a small business owner doesn't have time for – but that would be wrong. Future value and present value are monetary ...

"Present value" is the current value of a future sum of money. A concept known as the "time value of money" asserts that a certain sum today is worth more than the same sum tomorrow. This partly comes ...

This calculator shows how inflation affects the purchasing power of money over time. The nominal value is what your investment will be worth in future dollars, while the real value shows what it will ...

Calculating the future value of an annuity is another example of the principle that money invested today will be worth more in the future. What It Measures The value to which a series of fixed-amount ...