• Wrong document? Swap it for free
  • Written by students who passed
  • Immediately available after payment
  • Read online or as PDF
Sell
Where do you study
Your language
Start selling Create your account
Document preview thumbnail
Preview 1 out of 4 pages
Exam (elaborations)

D076 - Module 5 - Time Value of Money

Document preview thumbnail
Preview 1 out of 4 pages

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

Content preview

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

Document information

Study Level
Subject
Uploaded on
February 3, 2024
Number of pages
4
Written in
2023/2024
Type
Exam (elaborations)
Contains
Questions & answers
£7.99

Wrong document? Swap it for free Within 14 days of purchase and before downloading, you can choose a different document. You can simply spend the amount again.
Written by students who passed
Immediately available after payment
Read online or as PDF

Sold
2
Followers
0
Items
805
Last sold
6 months ago




Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these revision notes.

Didn't get what you expected? Choose another document

No problem! You can straightaway pick a different document that better suits what you're after.

Pay as you like, start learning straight away

No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.

Student with book image

“Bought, downloaded, and smashed it. It really can be that simple.”

Alisha Student

Working on your references?

Create accurate citations in APA, MLA and Harvard with our free citation generator.

Working on your references?

Frequently asked questions