Time Value Of Money

Learn about Time Value of Money - Present Value, Future Value, Compounding, Discount Factor, Annuity Factor,IRR

What you'll learn

Basic Concept about Time value of Money

Use of Concept of Time value of money

Time value of Money - Inflation and Purchasing power

Difference between Simple interest and Compound interest

Power of Compounding

What is Present Value and Future value ?

Calculation of Present value and Future value (Single Payment/receipt) without formula

How to derive a formula for present value and future value

What is Annuity and types of annuity

Present value of annuity without formula

How to derive a formula to calculate Present Value of Annuity

Future value of annuity without formula

How to derive a formula to calculate future Value of Annuity

Formula for present value when compounded daily, monthly, quarterly and half yearly

Formula for future value when compounded daily, monthly, quarterly and half yearly

Formula for present value of annuity when compounded daily, monthly, quarterly and half yearly

Formula for future value of annuity when compounded daily, monthly, quarterly and half yearly

Discount factor and computation

Annuity factor and computation

What is IRR (Internal rate of Return) ?

How to calculate Internal rate of return using interpolation

Requirements

Basic knowledge about financial terms

Description

Hi This course provides a detailed knowledge about Time Value of Money - Basic concept about Finance. The course consists of video lectures that explains concept along with illustrations. The illustrations are simple ones that makes it easy to understand the concept.The course is divided into following section :Section 1 : IntroductionThis section explains basic concept of Time value of Money - Meaning along with examples.Section 2 :  More about Time value of MoneyThis section explains uses of this concept of Time Value of Money. The factors such as inflation and purchasing power place important role in measuring time value of money. This is explained in detail.Section 3 : Interest, Present Value and Future Value This section explains about difference between Simple Interest and Compound Interest. How to calculate simple interest and compound interest and power of compounding.Other concepts related to Time Value of Money - Meaning of Present Value and Future ValueSection 4 : Present Value and Future Value for single cash flowThis section explains in details about how to calculate Present Value and Future Value for single cash flow.How to derive formula for calculating present value and future value of single cash flow ?The explanation is followed by detailed illustrations.Section 5 : Present Value and Future Value for AnnuityThis section explains in details about how to calculate Present Value and Future Value for annuity.How to derive formula for calculating present value and future value of Annuity ?The explanation is followed by detailed illustrations.Section 6 : Discount Factor and Annuity FactorThis section explains meaning of discount factor and Annuity factor and how to calculate the same.Section 7 : Compounding Daily, Weekly, Monthly, Quarterly and Half Yearly.This section explains Calculation of present value and future value of single cash flow when rate of interest is compounded daily, weekly , Quarterly and half yearly.Calculation of present value and future value of Annuity- Ordinary Annuity and Annuity due when rate of interest is compounded daily, weekly , Quarterly and half yearly.Section 8 : Internal Rate of Return (IRR)This section explains meaning of IRR (Internal rate of return) and calculation of IRR using Interpolation method.All the sections are logically arranged so that it is easy to understand concept of Time Value of Money. The sections should be viewed chronologically. TIP : If the student simultaneously solves illustrations along with video lecture it will be easy to understand concept.Thank youHappy Learning !!!

Overview

Section 1: Introduction

Lecture 1 Introduction- What is Time Value of Money

Section 2: More about Time value of money

Lecture 2 How to use concept of Time Value of Money

Lecture 3 Time Value of Money - Inflation and Purchasing Power

Section 3: Interest, Present Value and Future Value

Lecture 4 How to calculate simple interest and compound interest ? Power of Compounding

Lecture 5 What is Present Value and Future Value

Section 4: Present Value and Future Value for single cashflow

Lecture 6 Present Value and Future value for single cash flow without formula

Lecture 7 Present Value and Future value for single cash flow with formula

Section 5: Present Value and Future Value for Annuity

Lecture 8 What is Annuity and what are the types of Annuities ?

Lecture 9 Present value of Annuity without formula

Lecture 10 How to derive formula to calculate Present Value of Annuity ?

Lecture 11 Calculation of Present Value of ordinary annuity using formula

Lecture 12 Calculation of Present Value of Annuity due using formula

Lecture 13 Future value of Annuity without formula

Lecture 14 How to derive formula to calculate future Value of Annuity ?

Lecture 15 Calculation of Future Value of Ordinary annuity and Annuity due using formula

Section 6: Discount Factor and Annuity Factor

Lecture 16 What is discount factor and how is it calculated ?

Lecture 17 What is Annuity factor and how is it calculated ?

Section 7: Compounding Daily Weekly Monthly Quarterly Half Yearly

Lecture 18 Formula for single cash flow compounded daily, weekly, monthly, quarterly etc

Lecture 19 Formula for annuity compounded daily, weekly, monthly, quarterly etc

Section 8: Internal Rate of Return (IRR)

Lecture 20 What is Internal Rate of Return (IRR) and how to compute the same ?

Those who want to understand concept of Time value of money thoroughly