Basic Time Value of Money Calculator

Description
The excel sheet can be used to perform basic time value of money calculations. This will be useful for beginners and students.

About Time Value of Money

The time value of money draws from the idea that rational investors prefer to receive money today rather than the same amount of money in the future because of money's potential to grow in value over a given period of time. For example, money deposited into a savings account earns a certain interest rate and is therefore said to be compounding in value.

Time value of money is based on the idea that people would rather have money today than in the future. Given that money can earn compound interest, it is more valuable in the present rather than the future. The formula for the computing time value of money consider the payment now, the future value, the interest rate, and the time frame. The number of compounding periods during each time frame is an important determinant in the time value of money formula as well.


Note: All the research done by us is only for educational purposes and should not be seen as Investment recommendations. We are Research analysts and not a SEBI registered Investment Advisor. My research completely reflects my personal opinions and not of my employers. Kindly do your own due diligence before Investing