The 'Amount of One', also known as the 'Compound Amount of One', refers to the future value of a single unit of currency invested today at a specific interest rate over a given period.
An annuity factor is a mathematical figure that shows the present value of an income stream that generates one dollar of income each period for a specified number of periods.
The Banker's Year is a convention that standardizes the length of a month at 30 days and of a year at 360 days for ease of financial calculations, simplifying the handling of interest and other financial computations.
A mathematically derived factor from compound interest functions indicating the level periodic payment required to fully pay off a $1.00 loan over a certain period.
Present Value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. PV calculations are fundamental in finance and real estate as they determine what a future amount of money is worth today.
The Present Value of Annuity (PVA) represents the current value of a series of future equal payments, discounted at a specific interest rate, over a set period.
The safe rate is an interest rate offered by relatively low-risk investments such as high-grade bonds or well-secured first mortgages. It is often used as a benchmark for other rates of return to compare the risk and safety of various investment options.
