Mastering Money Clock - Unlocking The Secrets Of Time Value

Learn the power of compounding, discounting, calculation of present value and future value along with net present value

What you'll learn

Understanding how time impacts the worth of money is key to making sound financial decisions in day to day life or businesses.

Learn to calculate the present and future values. How compounding and discounting is performed to calculate the value of money to be received in future

Further understanding of Net Present Value (NPV), how these calculations help select the most feasible investment option

Practical examples and quizzes to reinforce the concept for in-dept understanding of concept which everyone should excel to control and movement of money

Requirements

Basic knowledge of finance and investment, basic maths, understanding of interest rates and knowledge of calculators and excel.

Description

Welcome to the fascinating world of the time value of money! This concept serves as a cornerstone in the realm of finance, guiding individuals and businesses in making sound investment decisions. At its core, the time value of money underscores the principle that a dollar today holds more worth than a dollar in the future. By understanding this fundamental idea, you can unlock a treasure trove of opportunities to grow your wealth and secure your financial future. Inflation, the gradual increase in the general price level of goods and services, has a profound impact on the purchasing power of currency over time. As prices rise, the same amount of money can buy fewer goods and services, thereby diminishing the purchasing power of individuals. This erosion of purchasing power is a crucial consideration when evaluating the time value of money. Understanding how inflation affects purchasing power is essential in assessing the real value of money over time and making informed financial decisions. By grasping these interwoven principles, individuals can navigate the complex landscape of investments, savings, and financial planning with confidence and foresight. Imagine being able to harness the power of compounding interest to watch your savings multiply over time, or strategically investing in assets that appreciate in value to build a robust portfolio. Whether you are a novice investor or a seasoned financial expert, grasping the nuances of the time value of money can pave the way for a prosperous and financially secure tomorrow. Join us on this enlightening journey as we delve deeper into the intricacies of this transformative concept and discover the keys to unlocking a world of financial possibilities.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 Understanding the Concept of Time Value of Money in Detail

Section 2: Application of Time Value of Money and Key Concepts Driving the Rule

Lecture 3 Application of Time value of Money

Lecture 4 Compounding and Discounting

Section 3: Present Value and its Calculation

Lecture 5 Present Value and its Calculation

Section 4: Future Value and its Calculation

Lecture 6 Future Value and its Calculation

Lecture 7 Comparing Investments

Section 5: Net Present Value and its Calculation

Lecture 8 Net Present Value and its Calculation

Section 6: Internal Rate of Return (IRR)

Lecture 9 Internal Rate of Return

Section 7: NPV vs. IRR

Lecture 10 NPV vs. IRR

Section 8: Annuities and Perpetuities

Lecture 11 Annuities and Perpetuities

Lecture 12 Types of Annuities

Lecture 13 Present Value and Future Value of Ordinary Annuities

Lecture 14 Present Value and Future Value of Annuity Due

Lecture 15 Perpetuities

Section 9: Discounted Cash Flow Analysis (DCF)

Lecture 16 DCF Analysis

Section 10: Time Value of Money - Conclusion

Lecture 17 Conclusion

Section 11: Case Study

Lecture 18 Case Study - Sigma Company

Lecture 19 Case Study - Individuals John & Starlet

Lecture 20 Case Study - DCF Analysis

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