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Introduction to Financial Analysis

Part III- The Time Value of Money

10.1: Chapter Ten- Learning Outcomes

80 of 150 · 71 words

From Introduction to Financial Analysis by LibreTexts (Kenneth S. Bigel, Touro University), used under the CC BY 4.0 licence. Written for a general audience, not for NEPSE.

  • Calculate Simple Future- and Present-Values both mathematically and with a simple calculator, and by using an Interests Rates Tables.
  • Apply the Three Commandments of the Time Value of Money (TVM).
  • Differentiate between simple interest and interest-on-interest.
  • Consider the curvilinear nature of compound interest and TVM.
  • Compare the relative volatilities of short-term versus long-term cash flows.

Note: Review questions for Chapters Ten and Eleven will appear at the end of Chapter Eleven.

This chapter at LibreTexts (Kenneth S. Bigel, Touro University). Tables and text are reproduced; images, videos and quizzes are not.