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.
The Amount of One per Period, also known as the Compound Amount of One per Period, is a financial concept used to determine the future value of a series of regular investments or payments. It allows investors and financial planners to project the growth of periodic contributions over time, considering the effect of compounded interest.
An annuity in arrears, also referred to as an ordinary annuity, is a financial product where payments are made at the end of each period. This type of payment structure impacts the present value and future value calculations of the annuity.
The Compound Amount of One Per Period represents the final value of a series of $1.00 deposits made at each period, with interest compounded at each period.
The Present Value of One (PV1) calculates the current worth of a future amount, discounted at a specific interest rate. This concept is pivotal in finance and real estate for determining the value of future cash flows in today's terms.
Reversionary value is the estimated value of a property at the end of a specific time period, often related to the expiry of a lease or a pre-determined holding period. It directly impacts investment decisions and property valuation models.
Simple interest is a method of calculating the future value of an amount of money assuming that interest paid is not compounded. Interest is paid only on the principal.
The Time Value of Money (TVM) is a financial concept that asserts money available at the present time is worth more than the same amount in the future due to its earning potential.
