# Archives

## Net Present Value (NPV) and Internal Rate of Return (IRR)

Net present value (NPV) and internal rate of return are intimately related to each other, and each is designed to answer a simple question: should I shell out my hard earned to make a given investment?  The investment could be: Buying a bond Buying a stock Buying some machinery Buying a truck Buying a company […]

CFA® Level I Membership, CFA® Level I Quantitative Methods Membership

This will give you access to this and all other articles at that membership level.

## Annuities and Perpetuities

The word annuity traces its origins back to the Latin annuus: yearly.  Such is the name of payments that are paid annually, or on some other regular schedule; i.e., the payments are periodic.  The payments can be fixed (i.e., equal), increasing or decreasing at a specified rate, or irregular (essentially random).  They can made at […]

CFA® Level I Membership, CFA® Level I Quantitative Methods Membership

This will give you access to this and all other articles at that membership level.

## Interest Rate Basics

This article will cover the basics on interest rates: what they are, how to interpret them, how they’re measured, that sort of thing.  More complex ideas on interest rates appear in separate articles. At its most basic, interest is rent paid to use money.  Just as you might pay rent to use someone else’s house […]

CFA® Level I Membership, CFA® Level I Quantitative Methods Membership

This will give you access to this and all other articles at that membership level.

## Chi-Square (χ²) Distribution

First things first: it’s chi-square, not chi squared. There is a family of chi-square distributions: one for each degree of freedom k, k = 1, 2, 3, . . .  For a given value of k, the chi-square distribution with k degrees of freedom is the probability distribution of the sum of the squares of […]