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Present Value
The current estimation of a future financial sum or series of payments, when discounted at a specific rate of return.
Discount Rate
The interest rate charged to commercial banks and other depository institutions for loans received from the central bank's discount window; also used in discounted cash flow (DCF) analysis to present value future cash flows.
Cash Flows
The total amount of money being transferred into and out of a business, especially affecting liquidity and financial stability.
Compounded Monthly
A method of calculating interest where the accumulated interest is added to the principal sum each month, leading to an increase in the total amount of interest earned.
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