To find an investment's interest rate, substitute price, face value, and duration into a formula. For T-bills, subtract purchase price from face value, divide by face value, adjust for term. Online ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

Learn to calculate the Sharpe Ratio in Excel for insightful investment analysis. Our guide will help you assess risk versus ...

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

Perpetuities pay a fixed annual sum; interest rate calculated by dividing payment by price. Example: $5,000 annual perpetuity for $60,000 has an 8.33% interest rate. Validate investment value using ...

Inflation is the increase in the cost of certain goods and services over a specific time. Inflation indicates the loss of purchasing power of a currency. When the cost of goods and services increases, ...

With the recent talk of inflation and a recession, there is plenty of economic uncertainty, with some people worried. It’s helpful to understand the inflation rate, how it’s calculated, and what it ...

Calculating the interest rate using the present value formula can at first seem impossible. However, with a little math and some common sense, anyone can quickly calculate an investment's interest ...