This calculator determines the present value for income streams that can be fixed over time, but can also be specified to grow over time.
The discount rate R applies to all payment streams.
Click "New" to create a payment stream. (The limit is four payment streams.) Click "Edit" to modify the parameters of an existing payment stream.
For each payment stream, the nominal value is V for period T. Enter T = 0 for a current (not discounted) value. If the growth rate PI is nonzero, the nominal values grow at that rate over time. The payment stream begins in period M and continues for N periods. Enter M = 1 and N = 30 for a 30-year mortgage with annual end-of-period payments
The "Help" pull-down menu has an option to show a table giving the present value calculations per period.
The "Help" pull-down menu also has options to show four examples: a coupon bond, a mortgage, an investment in college education, and a stock with growing dividends. The latter two examples illustrate the calculations for a growing income stream.
To start over, clear.