What 6 concepts are covered in the Continuous Annuity Calculator?
accumulated value
The total value of an investment, including principal and interest accrued
annuity
A stream of payments
continuous annuity
a type of guaranteed annuity where the annuity issuer is required to make payments for at least a specified number of years
continuous interest
the process of calculating interest and reinvesting it into an account balance over an infinite number of periods. P(t) = P0ert
interest rate
the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor
present value
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest. PV = FV/(1 + i)n where I is the interest rate per period, PV = Present Value, and FV = Future Value