The Inwood Annuity Factor is a multiplier used to determine the present value of a series of periodic payments from a level-payment income stream, based on a specific interest rate.
A level-payment income stream is a series of equal cash flows received or paid at regular intervals over a specified period. Often associated with annuities, it ensures a constant amount of payment or income in each period.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.