Definition The present value of an annuity (PVA) is the current worth of regular cash flows to be received at a specific date in the future based on the interest rate, which is also called… Read more

Definition In general terms, an annuity is a series of equal cash inflows or outflows made at fixed intervals. A series of coupon payments of a fixed-rate bond is an example of an annuity. So,… Read more

Definition The time value of money concept states that $1 today is worth more than $1 in the future. The reason is rather simple. If you have $1 today, you can invest it and receive… Read more

Definition The concept of time value of money is based on the idea that $1 now is worth more than $1 in the future. The basis of this idea is rather straightforward. If you have… Read more