D076 - Module 5 - Time Value of Money
Time Value of Money - ✔✔✔* Idea that money is worth more today than same amount in future
* Considers amount of cash flows at different times with certain interest rate
* Language of finance
TVM Variables - ✔✔✔* Amount of cash flows
* Timing of cash flows
* Rate at which cash flow value changes due to passage of time
Present Value - ✔✔✔* Represents value of cash today
* Relative to other cash flows
Future Value - ✔✔✔* Represents value of cash at a future point in time
* Relative to other cash flows
Compounding - ✔✔✔* Finding future value given a present value
Discounting - ✔✔✔* Finding present value given a future value
Annuities - ✔✔✔* Equally spaced cash flows of equal amount paid every consecutive period
Annuity Types - ✔✔✔* Ordinary Annuity
* Annuity Due
* Perpetuity
Time Value of Money - ✔✔✔* Idea that money is worth more today than same amount in future
* Considers amount of cash flows at different times with certain interest rate
* Language of finance
TVM Variables - ✔✔✔* Amount of cash flows
* Timing of cash flows
* Rate at which cash flow value changes due to passage of time
Present Value - ✔✔✔* Represents value of cash today
* Relative to other cash flows
Future Value - ✔✔✔* Represents value of cash at a future point in time
* Relative to other cash flows
Compounding - ✔✔✔* Finding future value given a present value
Discounting - ✔✔✔* Finding present value given a future value
Annuities - ✔✔✔* Equally spaced cash flows of equal amount paid every consecutive period
Annuity Types - ✔✔✔* Ordinary Annuity
* Annuity Due
* Perpetuity
