The imputed interest rate is an unstated interest rate and it can cover many different scenarios. To calculate an imputed interest rate, you need to input the actual cash flows and then you can solve for the interest rate.

The present value and the net present value are essentially the same calculation. As the example below shows, the difference has to do with whether there is a starting balance or not.

The magic of compounding can work to your advantage when it comes to your investments and can be a potent factor in wealth creation. While simple and compound interest are basic financial concepts, becoming thoroughly familiar with them will help you make better decisions when taking out a loan or making an investment, which may save you thousands of dollars over the long term.  When investing, compounding is critical. You'll start earning interest on your initial deposit and you'll earn interest on the interest you just earned.

Pricing a lease to produce a win/win proposal may take a little creativity. You may need the brilliant lease structure to win a deal and the right solution to make it happen.

If you are considering a settlement offer or if you want to pay off a settlement, you want to find out how much it is worth today. To do this, you need to calculate the present value, because the lump sum of your settlement’s value is going to be worth less in the future than it is today. When you have a claim to see how much money you would accept or pay today, a simple present value calculation is the answer.