Time Value of Money

Calculate present and future values for informed financial decisions. Covers simple and compound interest, annuities, perpetuities, loan amortization, and investment return analysis.

Usage

Provide financial parameters to get time value of money calculations, or ask about concepts and formulas.

Examples

• "What is $10,000 worth in 10 years at 7% annual interest?"
• "Calculate the monthly payment on a $300,000 mortgage at 6% for 30 years"
• "Compare two investment options with different cash flow timing"

Guidelines

• Always specify whether interest is simple or compound, and the compounding frequency
• Convert all rates and periods to consistent time units before calculating
• Use net present value (NPV) to compare investments with different timing
• Account for inflation when comparing values across long time periods
• Show the formula and all substitutions for verification