A standardized time measurement convention used in financial computations, where each month is assumed to have 30 days and the year 360 days.
The compound amount of one refers to the value that $1 would grow to if it is left on deposit with interest allowed to compound over a period of time.
The Inwood Annuity Factor is a multiplier used to determine the present value of a series of periodic payments from a level-payment income stream, based on a specific interest rate.
The net cost refers to the gross costs of purchasing an asset minus any income received. It provides a monetary value that represents the true cost to the buyer after accounting for rebates, subsidies, or incomes.
Today's value of an amount to be received in the future, based on a compound interest rate. For example, at a 12% interest rate, the receipt of one dollar one year from now has a present value of $0.89286.
The present-value factor is an accounting term that represents the multiplier used to determine the present value of a series of future cash flows, considering a specific discount rate.
Time value refers to the premium placed on the time an investor has to wait until an investment matures, using calculations such as the Present Value (PV). It applies to general investments as well as specific instruments like stock options.
