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In computing, a roundoff error, [1] also called rounding error, [2] is the difference between the result produced by a given algorithm using exact arithmetic and the result produced by the same algorithm using finite-precision, rounded arithmetic. [3]
The formula above can be used for more than calculating the doubling time. If one wants to know the tripling time, for example, replace the constant 2 in the numerator with 3. As another example, if one wants to know the number of periods it takes for the initial value to rise by 50%, replace the constant 2 with 1.5.
Each cash inflow/outflow is discounted back to its present value (PV). Then all are summed such that NPV is the sum of all terms: = (+) where: t is the time of the cash flow; i is the discount rate, i.e. the return that could be earned per unit of time on an investment with similar risk
T is the time periods to calculate in years Let’s say you’re depositing $10,000 into a high-yield account with a 5% APY compounded monthly. You must convert the APY into a decimal by dividing ...
A financial calculator or business calculator is an electronic calculator that performs financial functions commonly needed in business and commerce communities [1] (simple interest, compound interest, cash flow, amortization, conversion, cost/sell/margin, depreciation etc.).
This version of Pascaline was for accounting. [1] Pascaline (also known as the arithmetic machine or Pascal's calculator) is a mechanical calculator invented by Blaise Pascal in 1642. Pascal was led to develop a calculator by the laborious arithmetical calculations required by his father's work as the supervisor of taxes in Rouen, France. [2]
Any fixed time can be used in place of the present (e.g., the end of one interval of an annuity); the value obtained is zero if and only if the NPV is zero. In the case that the cash flows are random variables, such as in the case of a life annuity, the expected values are put into the above formula.
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