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If, after figuring out your personal inflation rate, you’re looking to alter your budget, it’s important to understand the distinction between discretionary spending and non-discretionary ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...

Accurate valuations are paramount in financial analysis, influencing corporate strategies, as well as investment decisions and market perceptions. Among various valuation methods, the discounted cash ...

The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a ...

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

The discount rate is used to calculate how much the expected future income from an investment over a given period of time is worth right now.

Use account balance and total interest paid to find the interest rate. Divide the interest paid by the account balance to calculate the rate. Multiply the result by 100 to express the interest rate as ...

In the latest edition of Technical Comment, Malcolm Rochowski gets back to basics on how to calculate a scheme discount rate.