The Calculating Lawyer

Recent Posts
 An Easy Formula to Determine If Your Spouse Deserves Alimony or Support: The DebttoAsset Ratio
 I Can’t Pay My Bills! Which Spouse Is REALLY In the Better Financial Position?
 I’ve Been RearEnded! How Fast Was That Other Car Going? Here’s the Formula.
 Alimony: How Much Can I Pay Now To Buy My Way Out of It Forever?
 Damages for Interfering With Your Real Property Rights. What’s It Worth?
 So Your Tenant Screwed You. There’s a Formula for That!
 If You’ve Mastered the Magic of 72, You’re Ready to Seize the Secret of 70!
 Happy Financial Independence Day! How Long Will It Take to Double Your Money?
 The Unlucky Landlord! Everybody’s Moving Out, But It’s Not His Fault! Somebody Must Pay For This, and How Much….?
 Guess What? You’re Buying Me a New House. How To Calculate Damages Using the Cost Approach.
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Category Archives: Business Formulas
Growing the Trust Fund: How much do you need today?
So you want to stash away some money for your children — a trust fund. Or perhaps you need to fund a support trust for an elderly family member. If you want the fund to generate the same amount of money every year, … Continue reading
Lottery Winner’s Dilemma: Lump Sum or Annuity? Calculating the Present Value of an Annuity.
What if you won the lottery tomorrow, and your jackpot was $60,000 a year for 15 years? That would come to $900,000! But, of course, you would have to wait 15 years to collect it all. What if you could … Continue reading
Net Present Value — Now let’s figure out if the project is really worth it?
Net present value (NPV) is essentially present value together with a costbenefit analysis. In other words, by calculating NPV, we can determine whether to accept a certain deal by ascertaining whether we will gain or lose money in the end. … Continue reading
Posted in Business Formulas
Tagged Future value, Investment, Net present value, NPV, Present value, Rate of return
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Compound it! — The advantages of monthly compounding
If you’re calculating the present value (PV) of a payment to be made in the future, don’t be so hasty as to assume that interest should be calculated on an annual basis. Indeed, it is common to calculate PV using … Continue reading
Posted in Business Formulas
Tagged Compound interest, Discount rate, Future value, Interest rate, Present value
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Present Value: What if I could get tomorrow’s money today?
Present value is the opposite of future value but can be calculated using the same formula.(For a review of future value, see our earlier post on January 14, 2012). Instead of asking what value presentday money will have in the … Continue reading
Posted in Business Formulas, Legal Formulas
Tagged Future value, Interest rate, Present value
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Future Value of an Uneven Cash Flow — What’s it really worth?
You’ve been sued and you’re going to lose the case. Perhaps you should settle the case now and cut your losses. The only problem is that you can’t pay the damages in one lump sum; you’ll need to pay them … Continue reading
Posted in Business Formulas, Legal Formulas
Tagged Cash flow, Future value, Present value, uneven cash flow
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Present Value of a Perpetuity — So you want to create a trust fund?
Let’s say you want to put away a certain amount of money today with the guarantee that it will generate a certain amount of interest every year, year after year. How much should you put away? A simple formula … Continue reading
Future Value with Monthly Compounding — Make more money this way!
If you’re calculating the future value of a presentday dollar amount, use monthly compounding to make yourself more money down the road. If you’re negotiating a deal, and talks have come to a standstill, get your opponent to agree to … Continue reading
Posted in Business Formulas
Tagged Compound interest, Future value, Interest rate, Present value
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Future Value
What’s the future value of a thousand dollars? This week, the King of Formulas is giving a refresher course on the most basic formulas used in the fields of business, law, insurance and finance. We start today with the calculation for future … Continue reading
Posted in Business Formulas, Legal Formulas
Tagged Compound interest, Future value, Interest rate, Present value
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Earnings Per Share
Determine a company’s profitability by calculating EPS: Earnings Per Share Continue reading