What are Number of Periods?
The number of periods in the context of time value of money refers to the total number of compounding periods or payment periods over which a financial transaction occurs. It could represent the number of years, months, quarters, or any other unit of time depending on the frequency of compounding or payments.
The number of periods is a crucial parameter in many time value of money calculations, including determining the future value, present value, or the duration of an investment or loan.
How to Calculate Number of Periods?
Number of Periods calculator uses Number of Periods = ln(Future Value/Present Value)/ln(1+Rate per Period) to calculate the Number of Periods, The Number of Periods formula is defined as the total number of compounding periods or payment periods over which a financial transaction occurs. Number of Periods is denoted by n_{Periods} symbol.
How to calculate Number of Periods using this online calculator? To use this online calculator for Number of Periods, enter Future Value (FV), Present Value (PV) & Rate per Period (r) and hit the calculate button. Here is how the Number of Periods calculation can be explained with given input values -> 14.30232 = ln(33000/100)/ln(1+0.05).