The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the time value of money, which is the concept that a sum of money today ...
When calculating the CAGR, you must first add the periods and the values for each period. To do this, you need a column focused on Years and another column focused on the Amount. If you are still ...
If your business makes investments in equipment and employee benefit contributions, you may need to track the average annual rate of return over a span of time for financial reporting obligations.
Calculate the weighted average of interest rates in Microsoft Excel to compute the most accurate average interest rate among a group of lenders who received different rates. When you take a weighted ...
Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...
The market price of a stock doesn't necessarily reflect its intrinsic value. Several economic theories use different approaches toward valuing companies, but one of the simplest involves calculations ...
When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. The next time you cover this topic, consider teaching students how to calculate ...