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Basic Finance

Future Derivative

What is Future Derivative An agreement between two parties for the purchase and delivery of an item at a certain price at a later time is known as a futures contract, or simply future derivative. Standardized...

What is Derivative | Students Explore

Define Derivative A financial contract type whose value is based on an underlying asset, group of assets, or benchmark is referred to as a “derivative.” A derivative is an agreement made between two or more parties...

Types of Financial Risks

What are Financial Risks Financial risks are the potential for losing money on an investment or business endeavor. Financial risks come in a variety of forms, including operational risk, credit risk, and liquidity risk. A potential...

Future Value Formula Annuity Ordinary and Due

What is Future Value of Annuity Future Value Formula Annuity measures the value of a series of payments, specified interest rate is provided, at some point in future. In simple words, it’s the sum of the...

Annuity Formula Present Value

What is Present Value of Annuity Present value allows you to recognize the present value of equally spaced payments in the future, set of interest rate provided. Use this annuity formula to calculate the present value...

Different Types of Annuity Explained Easily

Types of Annuity Basically there are total four types of annuities in Finance, which are based on two major factors such as, Time for starting receive payments and how would that annuity be grow. Immediate fixed Immediate variable...

What is an Annuity in Finance Explained Easy

Define Annuity in Finance An Annuity represents a series of equal payments (or receipts) occurring over a specified number of equidistant periods or at some point in the future. Annuities are actually insurance agreements that offer...

What are Compound Interest with Explanation

Compound Interest Definition Compound Interest is an interest on a deposit, which based on both the principal amount and the accumulated interest from previous period. In easy words, It is the interest earned on interest.   Detail...

What is the Simple Interest with Formula and Example

Simple Interest Definition Simple interest is that is paid or earned only on the original amount, or principal amount, that you borrowed. The amount of simple interest is a function of three variables: the original amount...