future value
The value that a current amount grows to at a given interest rate over a given period of time.
interest factor
the tabular value to insert into the various present value and future value formulas. It is based on the number of periods (n) and the interest rate (I)
present value
The current or discounted value of a future sum or annuity. The value is discounted back at a given interest rate for a specified time period.
discount rate
The rate at which future sums or annuities are discounted back to the present.
annuity
A series of consecutive payments or receipts of equal amounts.
future value of an annuity
The sum of the future value of a series of consecutive equal payments.
present value of an annuity
The sum of the present value of a series of consecutive equal payments.
yield
The interest rate that equates a future value or an annuity to a given present value.
compounded semiannually
A compounding period of every six months. For example, a 5 year investment in which interest is compounded semiannually would indicate an n value equal to 10 and an I value at one-half the annual rate.