Single Payment
When an investor lends money to a borrower, the borrower must pay back the money originally borrowed and also the fee charged for the use of the money, called interest.
In the Single Payment calculation interest can be either simple or compound.
The future value represents the accumulated value of the invested principal and the interest due, while the present value represents the sum you'll need to invest now that will accumulate to the entered principal.
To view the amortization schedule, select the Show Details command in the Calculation menu.
To toggle between date and year/period view, click the first column header in the Details.
To change the start date, select the Start Date command in the Edit menu to open the Date Options dialog.
Input
| • nominal annual rate | |
| • compounding frequency | |
| • periods | |
| • number of years or number of periods | |
| • principal |
Results
| • present value |
| • future value |
| • total paid |
| • total interest |
Examples
| • | A sum of $100 is deposited into a savings account at 4 % compounded annually. How much will be in the account after five years?
Answer: $121.67. |
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| • | A bank charges 11 % simple interest in advance on short-term loans. Find the sum received by the borrower who requests $900 for 3 months.
Answer: $875.91. |
Related topics
| Nominal annual rate |
| Simple interest |
| Compound interest |
| Periodic Payments |
| Interest between Dates |