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Earnings Rate
The return on an investment or the amount of profit made compared to the amount of money invested.
Internal Rate of Return
An investment’s projected rate of return, calculated by finding the discount rate that sets the net present value of all cash flows (both positive and negative) to zero.
Present Value
Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return, adjusting for the time value of money.
Annuity
An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.
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