The Time Value of Money (TVM), a fundamental financial principle, explains the worth of money in relation to time; money received today is worth more than money received in the future. TVM has wide application; from personal financial decisions, and corporate finance, to real estate. For example, TVM calculations help 1) individuals decide how much to save and spend in order to reach a desired financial goal, 2) investors pick the mix of a portfolio, 3) businesses evaluate the future cash flow of capital budgeting projects, and 4) real estate investors determine what price should be paid for a property that generates an estimated series of income. Accountants should also have a working knowledge of TVM factors including compound interest, annuities, and present value because of their application to numerous types of business events and transactions. This course explains the TVM concepts and their application to different financial and investment situations. A series of examples are presented to illustrate the calculations in detail to allow you to learn the application procedure for making sound financial decisions.
Learning Objectives
1. Recognize the concepts of TVM, compounding, and discounting
2. Calculate the present value and future value of various financial transactions
3. Recognize how TVM affects the loan amortization
4. Identify the application of TVM to bond valuation
5. Identify different techniques used to evaluate business investments
To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate.
Upon course completion A course evaluation form is provided for your feedback.
Participants have 1 year from the date of purchase/enrollment to complete this course
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