# Time Value of Money

Guide to understand the Present value and Future Value of Money

Self paced

tutorials

This course is about Time Value of Money. Time Value of Money is an important concept in Financial Management. In Business, Financial Decisions should be taken only after considering the Time Value aspects of Money. Time Value of Money is based on the concept that money you have today is worth more than the promise or expectation that you will receive in the future.

Everyone knows that money deposited in a savings account will earn interest. Because of this universal fact, we would prefer to receive money today rather than the same amount in the future. This course is presented in simple style. **By taking this course, you will learn the following topics:**

**a) What is Simple Interest?**

Interest is computed on a simple basis if it is paid only on the principal of the loan.

**b) What is Compound Interest?**

Compound interest is paid on accumulated loan interest as well as on the principal.

**c) How to compute Future Value of Single Amount?**

You will learn how to compute Future Value of Single Amount.

**d) How to compute Future Value of Periodic Cash Flow?**

You will learn how to compute Future Value of Periodic Cash Flows.

**e) How to compute Present Value of Single Amount?**

You will learn how to compute Present Value of Single Amount.

**f) How to compute Present Value of Periodic Cash Flow?**

You will learn how to compute Present Value of Periodic Cash Flows.

**g) How to compute Doubling Period of an Investment?**

You will learn how to compute Doubling Period for Investment

. **h) How to compute Present Value of Perpetuity?**

You will learn how to compute Present Value of Perpetuity.

This course has self paced learning video lectures. There are 23 video lectures discussed under 4 Sections. Take this course to understand the nuances of Time Value of Money for Business Finance as well as Personal Finance Activities.

**Course Package:**

- 23 videos

**Course Content:****Section 1: Introduction**

1.Introduction to Time Value of Money

**Section 2: Simple Interest and Compounding Interest**

2.Simple Interest

3.Simple Interest Example

4.Compounding Interest

5.Types of Compounding

6.Compound Interest Example

7.Monthly Compounding Example

8.Problem on Compounding Interest

9.Problem on Computation of Compounding Interest

**Section 3: Future Value**

10.How to Compute Future Value of Single Amount?

11.How to find Doubling Period for an Investment?

12.How to find Future Value of an annuity?

13.Examples for Future Value of an annuity

**Section 4: Present Value**

14.How to find Present Value?

15.Present Value Example

16.Present Value Example 2

17.How to find Present Value of Fixed Cash Flows?

18.Present Value Annuity Example

19.Present Value Annuity Problem

20.How to Compute EMI?

21.Problem on EMI

22.Factor Table

23.Perpetuity

Language of instruction: English

- Importance of Time Value of Money
- How to compute Future Value of Money
- How to compute Present Value of Future Cash Flows

I am a practicing Chartered Accountant with tonnes of passion for teaching. I teach Financial Management for Chartered Accountancy and Cost and Management Accountancy students in Ernakulam, India.

I also hold

- Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune
- Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in

a) Financial Analysis

b) Risk Assessment

c) Viability Study

d) Evaluating business models

e) Project Finance

f) Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like

a) Project Finance

b) Credit Risk Assessment

c) Entrepreneurship Development

d) Finance for Non Finance Executives

e) Burning Desire for Entrepreneurship