Lesson 2 of 11 • 9 upvotes • 7:41mins
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.
11 lessons • 1h 17m
Introduction to Time Value of Money and Simple Interest
13:52mins
Compound Interest
7:41mins
Valuation Using Tables
8:05mins
Understanding Annuities
7:07mins
Solve Time Value of Money Problems
5:32mins
Steps to Amortizing
5:26mins
Future and Present Values
4:49mins
Solving Complex TVM Problems
5:07mins
Cash Flow Diagrams
5:10mins
Time Value of Money - Another Look
9:17mins
Valuation of Bonds
5:16mins