When Is A Present Value of a Series Calculator Used?
Frequently, this a calculator is used to determine the cash value of a court settlement. If a settlement dictates that $2,500 is to be received monthly for twenty years but the party receiving the settlement is not comfortable waiting twenty years, then they could agree to settle for a lesser cash amount today. The amount they would be willing to settle for would be the present value. The PV varies from individual to individual depending upon the “annual discount rate” used. The “discount rate” is the rate of return the user expects to earn on their investments. Investors also frequently use a present value of a series calculator. For example, mortgages are often bought and sold. When an investor buys a mortgage, they need to use a PV of an annuity calculator to determine how much to pay for a mortgage. A thirty year, fixed rate mortgage may have been issued ten years ago at a 6.5% annual rate. Today, an investor might be willing to buy a mortgage for a 4.0% return. This calculator tel
Related Questions
- Can you recommend software that will compute the present value of Series E and EE Savings Bonds, if you tell it the issue date and face value of the bond?
- Is the discount rate used only to find the Net Present Value ("NPV") or does it also affect payments to successful Proponents?
- How is a present value appraisal used in the divorce process?
