Microsoft Excel has dozens of preset formulas for many types of mathematical calculations, but compounding interest isn't one of them. To calculate the future value of a single amount compounded ...

This Technology Workshop illustrates how to leverage a number of functions to perform calculations in Excel involving the time value of money.

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

Since an annuity’s present value depends on how much money you expect to receive in the future, you should keep the time value of money in mind when calculating the present value of your annuity.

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when ...