Chartered Accountant,	Cost & Works Acct , Passed CISA and CISSP, BA Eco(Hons) St Stephens College, ISC St Columba's School, Delhi

Rakesh Sud

The time value of money (TVM) is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received

Choose from the various concepts taught in a comprehensible way for students looking to strengthen their CA preparation.

CA Foundation

English

Time Value of Money

Personal Finance

Cost A/C, Financial Mgmt

IPCC Group 1 - Old Syllabus

CA, CS, and CMA

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Test Preparation

IPCC Group 1IPCC Group 1 - Old Syllabus

Cost Accounting and Financial Management

This lesson gives us an introduction and then looks at Simple Interest.Simple interest is applied to the initial amount, called the principal, for a given time period for interest. If the period of the loan is greater than the time period for interest, the simple interest will be repeated, at the same amount, and accumulate during successive time periods for interest until the end of the time period of loan.

Introduction to Time Value of Money and Simple Interest

Time Value of Money- Compound Interest. Method of calculating it is first discussed.Compound interest is applied to the initial sum, plus any previous accumulated interest that has not been paid, for each successive time period for interest. The rationale for compound interest is that the interest is in fact money that should be in hand at the end of the time period for interest, i.e., at the time it is due. Therefore, if that interest is not received, it is, in effect, also lent and therefore should also bear interest.

Compound Interest

This lesson describes the Time Value of Money- Valuation Using Tables.

Valuation Using Tables

Time Value of Money-Annuities. Annuities are a series of level/even/equal sized cash flows that occur at the end of each time period for a fixed time period.Some Examples of Annuities areCar Loans,House Mortgages,Insurance Policies,Some Lotteries are Retirement Money.Perpetuities are a series of level/even/equal sized cash flows that occur at the end of each period for an infinite time period.

Understanding Annuities

This lesson describes Time Value of Money-Steps to Solve Time Value of Money Problems. Steps to Solve Time Value of Money Problems are1.  Read problem thoroughly 2.  Create a time line 3.  Put cash flows and arrows on time line 4.  Determine if it is a PV or FV problem 5.  Determine if solution involves a single CF, annuity stream(s), or mixed flow 6.  Solve the problem 7.  Check with financial calculator (optional)

Solve Time Value of Money Problems

Time Value of Money-Amortizing. Steps to Amortization are:-
1.		Calculate the payment per period.
2.		Determine the interest in Period t.			   (Loan Balance at t-1) x (i% / m)
3.		Compute principal payment in Period t.		(Payment - Interest from Step 2)
4.		Determine ending balance in Period t.		(Balance - principal payment from Step 3)
5.		Start again at Step 2 and repeat.

Steps to Amortizing

Time Value of Money-Future Value and Present Values. In understanding we see that Present value factors are reciprocals of future value factors, Interest rates and future value are positively related, Interest rates and present value are negatively related ,Time period and future value are positively related and Time period and present value are negatively related

Future and Present Values

Time Value of Money-Solving complex TVM problems. We can use value additivity and cash flow diagrams to solve complex TVM problems more easily.

Solving Complex TVM Problems

Time Value of Money-Cash Flow Diagrams.Organizing TVM problems with cash flow diagrams helps us visualize and solve complex problems. These are also known as time lines. Cash flow diagrams depict The timing of each cash flow, its amount, and its sign, The rate at which cash flows will be compounded/be discounted/grow and The value for which we are attempting to solve.

Cash Flow Diagrams

Time Value of Money-Another Look. There are three reasons why a rupee tomorrow is worth less than a rupee today. 	Individuals prefer present consumption to future consumption. To induce people to give up present consumption you have to offer them more in the future.	When there is monetary inflation, the value of currency decreases over time. The greater the inflation, the greater the difference in value between a dollar today and a dollar tomorrow.If there is any uncertainty (risk) associated with the cash flow in the future, the less that cash flow will be valued.Other things remaining equal, the value of cash flows in future time periods will decrease as the preference for current consumption increases, expected inflation increases.the uncertainty in the cash flow increases.

Time Value of Money - Another Look

Time Value of Money- Valuation of Bonds.You are trying to value a straight bond with a fifteen year maturity and a 10.75% coupon rate. The current interest rate on bonds of this risk level is 8.5%.PV of cash flows on bond = 107.50* PV(A,8.5%,15 years) + 1000/1.08515 = Rs 1186.85

Valuation of Bonds

A practicing CA and an aspiring entrepreneur,I am on a mission to add value to the Indian education landscape through my deeds.

Jyoti Panjabi

The basics of ratio analysis cum financial statements along with exercises

(Hindi) Ratio Analysis for CA

🔥Daily 4 lessons.
B.COM,M.COM,MORE THAN 4 Yrs of TEACHING EXPERIENCE ,YOUTUBE CHANNEL:Teacher By Passion

Subham Sharma

In this course, the educator discusses Financial Management.

(Hindi) Financial Management - CA Exams

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YouTube  channel - simran wadhwa
WINNER ✌Educator of the week on unacademy 2019.

Simi 

In this course, the educator is discussing everything about financial management: the meaning of financial management, its functions, it's goals and so on for CA exams

(Hindi) Nature and Scope of Financial Management CA Exams

I have done bcom hons from delhi university and cleared CA IPCC in first attempt. learning is growing and growing is living! happy learning😊

Archita Bansal

This course discusses that various techniques that helps a company evaluate and select long term investments that are in line with the goal of wealth maximisation.

(Hindi) Capital Budgeting Techniques - CA Exam

Nikita Khetan

Theory questions of past exam questions of Capital Budgeting and cost of Capital

Past Exam Questions

Qualification-CA,BCOM(HONS) and pursuing B.ED
I have 4 years experience as a tution teacher.


Monika Sharma

This course has been designed for professional courses and graduation as well as post graduation courses for the subject of financial management and cost accounting in a friendly manner with a precise text and also extensive practice of various concepts in this field.

Lessons

11 lessons • 1h 17m