Time value of money, simple interest, compound interest, present value of 1, future value of 1, present value of ordinary annuity, present value of annuity due, future value of annuity, future value of money, cpa exam

Views: 17662
Farhat's Accounting Lectures

This video explains the concept of the time value of money, as it pertains to finance and accounting. An example is given to illustrate why there is a time value associated with the timing of cash flows.
Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com
To like us on Facebook, visit https://www.facebook.com/Edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
https://facebook.com/Prof.Michael.McLaughlin
To follow Michael on Twitter, visit
https://twitter.com/Prof_McLaughlin

Views: 171803
Edspira

Why when you get your money matters as much as how much money. Present and future value also discussed. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/introduction-to-present-value?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/cont-comp-int-and-e/v/continuously-compounding-interest-formula-e?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to "present value". So pay attention to this tutorial.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Views: 441383
Khan Academy

http://www.subjectmoney.com
This Time Value of Money Lesson TVM covers all the basic concepts of the Time Value of Money that you would learn in Finance. In this tvm tutorial we cover simple interest, compound interest, present value formula, future value formula, annuity due, ordinary annuity, present value of annuities, future value of an annuity, intrayear compounding interest, and perpetuities. In this time value of money lesson we teach you by video using visualizations to help you understand how money and time works. If you study this finance tvm video tutorial in combination with what you leanr about the time value of money in your finance class, you should have a clear understanding when it is time to take your time value of money tvm test or exam. I’m glad that I could help you study for your finance time value of money exam.
What is simple interest?
What is compound interest?
What is an ordinary annuity?
What is an annuity due?
What is the present value formula?
What is the future value formula?
How to solve the present value of an uneven series of cash flows.
What is a perpetuity?
How to solve the present value of an ordinary annuity.
How to solve the present value of an annuity due.
How to solve the future value of an annuity due.
How to solve the future value of an ordinary annuity.
Present value of a perpetuity formula.
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Views: 197835
Subjectmoney

Lecture 7: Time Value of Money
Professor Carolyn Levine
Time Value of Money is a very important aspect of accounting, and in this lecture we will talk about its relevance and significance. We talk about interest and the different ways it can be calculated and charged. The phrase time value of money indicates a relationship between time and money. A dollar received today is worth more than a dollar promised at some time in the future.
Interest is the payment for the use of money (i.e. excess cash received or repaid over the amount borrowed, the principal). Variables determining the amount of interest include the principal (amount borrowed or invested), the interest rate (a percentage that determines the amount paid or received), and the time (usually the number of years or portion of a year that the principal is outstanding.
For the simple calculation of an annuity, there must be periodic payments or receipts (called rents) of the same amount, there must be a same-length interval between such rents, and compounding of interest must occur once per interval. Ordinary annuities are when the payment and receipt are due at the end of the period. An annuity due is when the payment or receipt occurs at the beginning of the period.
Present vs. future values refer to what amount today is equivalent to the set of annuity payments. It involves valuing assets purchased using an annuity contract. It involves determining the required contributions for settling a liability. Regarding on the future value of an annuity due, rents occur at the beginning of each period, and interest accumulates during the first period. Essentially, annuities due have one more interest period than ordinary annuities, but the same amount of deposits and receipts.
Time Value of Money 0:09
Relevance of Time Value 1:15
Basic Concepts 10:15
Example 12:48
Compounded Interest (Example) 20:20
Calculations for Compounded Interest example 25:00
Examples 31:21
Single Sum: Unknown PV or FV 32:54
Quiet for class example 41:15 - 43:19
Class example solution 43:20
Single Sum: Unknown duration or rate 47:20
Annuities 55:40
Present vs. Future Value 1:02:27
Example 1:05:55
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Rutgers Accounting Web

This video explains how to calculate the present value of an annuity. A formula is presented for calculating the present value of an annuity and an example is used to illustrate the calculations.
Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com
To like us on Facebook, visit https://www.facebook.com/Edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
https://facebook.com/Prof.Michael.McLaughlin
To follow Michael on Twitter, visit
https://twitter.com/Prof_McLaughlin

Views: 117640
Edspira

New Version of this lecture is also available on YouTube. You can watch that with the link given below:
https://www.youtube.com/watch?v=Yf-VmsLc40k
Explained the concept of time value of money.
Further CVF, CVAF, PVF and PVAF tables are explained.
Student can also watch the following lectures related with the same topic :
1. Present Value of Perpetuity :
https://www.youtube.com/watch?v=gVxvJ_JTiug
2. Time Value of Money (Problem & Solution) :
https://www.youtube.com/watch?v=UTCyi_OdRYE
3. Utility of CVF, CVAF, PVF and PVAF in Financial Management :
https://www.youtube.com/watch?v=WBOMLP7oXU4
4. Application of PVAF, CVAF, PVF and CVF tables in Financial Management :
https://www.youtube.com/watch?v=XNCPVqLeFi8
5. How to calculate PVF, PVAF, CVF, CVAF values on calculator :
https://www.youtube.com/watch?v=cUTDq6hpais
Connect on Facebook :
https://www.facebook.com/ca.naresh.aggarwal
Download Assignments:
https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
#TVM #FinancialManagement

Views: 157647
CA. Naresh Aggarwal

Time Value of Money - Financial Management (FM)
Time Value of Money - TVM
The time value of money means money available at the present time is worth more than the same amount in the future due to its potential earning capacity.
Basic Time Value of Money
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x (1 + (i / n)) ^ (n x t)
Few of the basic terms used in time value of money calculations are:
Present Value
When a future payment or series of payments are discounted at the given rate of interest up to the present date to reflect the time value of money, the resulting value is called present value.
Future Value
Future value is amount that is obtained by enhancing the value of a present payment or a series of payments at the given rate of interest to reflect the time value of money.
Interest
Interest is charge against use of money paid by the borrower to the lender in addition to the actual money lent.
Application of Time Value of Money Principle
There are many applications of time value of money principle. For example, we can use it to compare the worth of cash flows occurring at different times in future, to find the present worth of a series of payments to be received periodically in future, to find the required amount of current investment that must be made at a given interest rate to generate a required future cash flow, etc.
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StayLearning

Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity, net present value, NPV, internal rate of return, IRR, payback period, cost of capital, cpital budgeting, simple rate of return

Views: 3265
Farhat's Accounting Lectures

The time value of money is a concept that allows us to find out what the present value of a certain cash flow is so that we can compare it with another. We can also find the future value and compare the figures. The idea is that we want to find out what the cash flow is worth today.
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Views: 7487
Notepirate

The present value of annuity formula determines the value of a series of future periodic payments at a given time. The present value of annuity formula relies on the concept of time value of money, in that one dollar present day is worth more than that same dollar at a future date.

Views: 7954
Farhat's Accounting Lectures

future value of 1, present value of single amount, present value of ordinary annuity, present value of annuity due, future value of annuity, future value of money, cpa exam, Time value of money, simple interest, compound interest, present value of 1

Views: 11442
Farhat's Accounting Lectures

Background
A dollar received now is more valuable than a dollar received a year from now. If you have that dollar today, you can invest it and increase its value. Let's explain a bit further:
The time of value of money is the difference in value between having a dollar in hand today and receiving a dollar sometime in the future.
Why is present and future value important?
Since money has a time value, we must take this time value into consideration when making business decisions. Present and future value calculations are powerful methods available in making financial decisions.
Once you understand and master the calculations, you can apply these equations for restating cash flows to make them equivalent in business decisions. The calculations are building blocks for many decisions facing individuals and managers alike. In addition, these calculations allow one to calculate returns on investments, capital budgeting, and return on annuities, just to name a few.
Key terms:
Future value (fv) and present value (pv) are two concepts in clarifying the value of money.
Future value is explained as an amount of money invested at present and will mature at the end of a given time when compounded at a given interest rate.
Present value is money that must be invested now to accrue to a certain amount of money in the future when compounded. In simpler terms, present value is the value today of an amount of money in the future. Why is this important? For these situations, businesses need to find a method of weighing cash flows that are received at various periods of times (annual, years, quarters, ect).
How do we go about finding the present and future value of cash flow?
There are two fundamental equations that are commonly used; this video will demonstrate them throughout the presentation.
Objectives:
Following my discussion, you will be able to:
• Have the knowledge of present value (pv) and future value (fv)
• Be able to calculate the pv and fv with compounding
• Have an understanding of compound interest
Discussion:
The video discusses the value of a dollar in hand today and applying calculations to determine what that dollar will be worth in the future. In addition, the video demonstrates the concept of wanting to have a specified amount of money in the future and the amount of money needed today in order to earn that specified amount.
See the formulas used in video:
Fv=pv (1+i) n
Pv= (1/1+i) n
FvPvn
Pv=the beginning amount
i= the interest rate/year
n=number of years
Fv=value at the end of n years.
Important points:
When computing compounding interest for greater than one year, remember that the interest in the next year is being paid on interest. The interest on the original dollar amount is referred to as "simple interest." Lastly, Net present value can be defined as the difference between the PV of cash inflows and the present value of cash outflows. Net present value is used in capital budgets to assess the probability of a project. The net present value is a standard affirming that a project should be established.
Example:
If a bank pays 5% interest on a $100 deposit today, in one year, this $100 will be worth $105. This is expressed by the following equation: F1= p (1+r). F1 is the balance at the end of the period, p represents the amount of invested, and r represents the rate of interest.
For example, the future of $1,000 compounded at 10%, would be $1,100 after one year and $ 1,331 after three years of investing. For example, if the interest rate is 10%, then the present value of $500 earned or spent in one year from now is $500 divided by 1.10, equates to $455. This example demonstrates the overall notion that the present value of a future amount is less than the actual future amount.
Summary
Present and future values are important methods for any financial decision. An investment can be viewed in two methods. We discussed present and future values in this video. The process of finding the present value of future cash flows is referred as discounting. Discounting future value to present value is a common technique, especially when weighing in on capital budget decisions. Have the knowledge of the calculations will allow individuals to calculate almost any investment decision

Views: 107666
Lisa Dumont

Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy..
Exactly what is Present Value and how will you utilize the Present Value Formula? In the event that you already understand the idea of Future Value, you will be able to easily understand Present Value.
Exactly what is the "Present Value" of today's $100? It's also $100! Why? Because "present" means "today". Thus, it is $100 today (present value), and after earning interest, it may become $105 the following year (future value).
Let's say that one year ago, this money was only a little more than $95, and then it earned interest all through the year, and now it's valued at$100. Exactly which is the "Past Value" of your $100? Again, very straightforward! It is $95.
So... with regard to your $100 right now, Present Value is $100, Past Value is $95, and the Future Value is $105. However, that was quite a simple example to point out the concept.
The important challenge in school as well as actual business is learning the specific number of your Future Value, Present Value, and Past Value, using scary looking but very simple formulas.
The Present Value or Past Value Formula, simplified, resembles this:
Present Value or Past Value = (1 interest rate)^n
Where n = number of years.
Don't be alarmed. You might prefer to watch it in action in the video above and you'll see how easy it is to use it.
Just about the most confusing thing regarding the Present Value and Past Value concepts is that in many different business schools also with numerous books, Present Value and Past Value are explained almost like they're exactly the same thing. However, they are not. They are very different! Why the confusion?
Because they definitely utilize the same formula. However, the result of the formula will allow you compute either the present value or the past value, depending on how the story is told.
http://www.youtube.com/watch?v=zR3L5mLTi7s

Views: 228552
MBAbullshitDotCom

Tutorials to help you through your introduction to accounting class.

Views: 62
Linda Rutz

A choice between money now and money later. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/present-value-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to "present value". So pay attention to this tutorial.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Views: 771117
Khan Academy

See the below link for more resources, including as a list of all of my videos, practice exercises, Excel templates, and study notes.
https://www.dropbox.com/s/09hdhag3zieyt08/Severson%20YouTube%20Videos.xlsx?dl=0
This video discusses the concepts of Future Value and Present Value in relation to the time value of money. This includes discussions of lump sums as well as annuities. We will discuss the use of tables, as well as Excel formulas.

Views: 636
Christopher Severson

Views: 551
ProfAlldredge

We analyze what the time value of money is and how it can be used for both investors and individuals. We look at the present value formula and the future value formula.
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Views: 1565
Learn to Invest

In the video, 11.02 - Present Value Tables – Time Value of Money – Lesson 1, Roger Philipp, CPA, CGMA, explains present value of a lump sum and present value of an ordinary annuity, or annuity in arrears, how to find the present value factors in a present value table and how to apply the knowledge in calculating the present value of a bond at issuance. Future value concepts are also covered, but only briefly because present value is more relevant for the CPA Exam. Roger also breaks down how the present value of an annuity is just a summing of multiple present value of a lump sum values.
Be sure to watch video, 11.02 - Present Value Tables – Time Value of Money – Lesson 2, for the rest of Roger’s in-depth explanation of present value concepts and how they apply to bonds.
Connect with us:
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Video Transcript Sneak Peek:
Ok, we talked about present value as far as the bonds. Let's now look at this and apply it. Now, if you come back over here, we said how do you figure out the proceeds on the bond? We said face, par, million dollar face times the present value of the lump sum, 10 percent, boom. Plus, 80,000 present value of an ordinary annuity, 5 years, 10 percent, boom.
So the question is, what does this mean, where do these factors come from? Those are called present value. If you look in your notes you will see present value of an amount. That is present value of a lump sum. That's the amount you need to invest today at a certain interest rate for so many years to get back a dollar in the future.

Views: 13450
Roger CPA Review

More HD Videos and Exam Notes at https://oneclass.com
Our goal is helping you to get a better grade in less time.
We provide various exam tutorials which are specifically designed for your courses.
Please go to our official website http://oneclass.com and
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OneClass

What happens when we have multiple periods of different sized cash flows? We discount the cash flows individually using the equation we just learned. Illustrations included to clearly explain the concept like always!
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Views: 29832
Notepirate

View full lesson: http://ed.ted.com/lessons/how-to-calculate-the-future-value-of-your-cash-german-nande
We've all heard the phrase "Time is money." But what do these two things actually have to do with one another? German Nande explains the math behind interest rates, revealing the equation that will allow you to calculate the future value of your money (if you wisely put it in the bank, that is).
Lesson by German Nande, animation by TED-Ed.

Views: 225571
TED-Ed

Describe the fundamental concepts related to the time value of money. These techniques are being used in many areas of financial reporting where the relative values of cash inflows and outflows are measured and analyzed.
Compound interest, annuity, and present value techniques can be applied to many of the items found in financial statements. In accounting, these techniques can be used to measure the relative values of cash inflows and outflows, evaluate alternative investment opportunities, and determine periodic payments necessary to meet future obligations.

Views: 1569
Farhat's Accounting Lectures

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التلخيص وكل ما يتعلق بالمادة هنا :
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Turbo Team

Gives examples of Time Value of Money problems. Usually the most challenging aspect is figuring out which type of problem you are dealing with.

Views: 6846
c hanusa

Solved various types of problem related to time value of money so that students can understand how we apply different table values in different situations.
Generally student will get the Time Value Table at the back pages of their Financial Management book. If they don't have that Table then can be downloaded from below mentioned download link.
1. How to calculate PVF, PVAF, CVF, CVAF values on calculator :
https://www.youtube.com/watch?v=cUTDq6hpais
Student can watch following lectures if not fully aware of 'Time Value of Money' :
1. https://www.youtube.com/watch?v=oeox8DLagHU
2. https://www.youtube.com/watch?v=WBOMLP7oXU4
3. https://www.youtube.com/watch?v=XNCPVqLeFi8
🔴 Connect on Facebook :
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Views: 32194
CA. Naresh Aggarwal

Accounting 2 - ACCT 122 - Program #211 - Time Value of Money

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JCCCvideo

Lecture 11: Capital Investment Decisions
and the Time Value of Money
by Professor Victoria Chiu
(Chapter 21)
This lecture focuses primarily on capital budgeting. The topics of payback period and rate of return are discussed as well as the methods for calculating them. Lastly, the concept of time value of money is explained, as well as the many terms that fall under it (annuities, future values, present values, number of periods, interest, and more).
Begins with Overview of New Topic
and Learning Objectives of Chapter
Capital Budgeting (defined): 2:47
Cash Flows: 8:48
(relation to Capital Budgeting)
Capital Budgeting Process (diagram): 12:50
Payback Period (defined): 17:35
Calculating Payback Period: 19:19
Criticisms of Payback Period: 28:24
Rate of Return (defined): 30:26
Calculating Rate of Return: 35:21
Rate of Return Decision Rule: 43:35
Exercise S21-2: 45:11
(Using payback period and rate
of return methods to make capital
investment decisions)
Exercise S21-2 Solution: 51:51
Time Value of Money (defined): 1:01:22
Factors That Affect Time Value of Money: 1:03:27
Interest: 1:05:45
Present and Future Value
Along a Time Continuum: 1:07:52
Factors for Present and Future Value: 1:09:16
Using Future Values (FV factors table): 1:09:36
Using Future Values for Annuities: 1:11:28
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Rutgers Accounting Web

Time value of Money, Simple and Compound interest, Business Mathematics, Principals of Finance, Managerial Finance ,Finance & Capital Market, Time value of money (introduction) - Financial Management (FM) Time value of Money, Concept explained Simple VS Compound interest.
National university of Bangladesh NU
This video is contributed by
Md Mostafizur Rahman.
Lecturer
Govt. Janata College,
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Time Value of Money
অর্থের সময় মূল্য
Simple Interest. mij my`
Compound Interest. Pµe„w× my`
Compound Interest
FV =PV〖(1+r)〗^n
Installment / wKw¯Íi K_v _vK‡j t
PV = A/r{1-1/(1+r)^n }
FV= A/r{(1+r)^n-1}
Note: wKw¯Í / my` eQ‡i GKvwaK evi cÖ`vb Kiv n‡j cÖ‡Z¨KwU r ‡K m Øviv fvM I n ‡K m Øviv ¸b Ki‡Z n‡e|
wKw¯Í my` eQ‡ii ïiæ‡Z cÖ`vb Kiv n‡j m~‡Îi †k‡l GKUv (1+r) AwZwi³ ¸Y Ki‡Z n‡e|
GLv‡b, PV= Present Value (eZ©gvb g~j¨ / Avmj)
Fv= Future value. (fwel¨r g~j¨ / my`vmj)
r= Rate of Interest. (m~‡`i nvi)
A= Annuity (wKw¯Í)
m= Maturity Period (c~Y©Zv cÖvwßi mgq Kvj)
Find the compound interest on tk. 10,000 for 4 years at 5% per annum. What will be the simple interest in the above case?
Solutions:
here
Present value PV=10000
Rate of interest r = 5%=5/100=.05
Number of year n=4
we know,
FV =PV〖(1+r)〗^n
= 10000(1+.05)^4
=1000×1.21550625
=12,155.06
So interest= Fv-Pv = (12,155.06-10000)=2,155.06
For Simple Interest:
I=Pnr
= 10000×4×.05=Tk.2000 (Ans)
What sum of money invested at 8% per annum? Payable half- yearly for 2 years will amount to tk.1000?
Here,
Fv=1000
r=8%=8/100=0.08
m=2
n=2
PV=?
we know,
FV =PV〖(1+□(r/m))〗^nm
1000=PV (1+□((.08)/2))^(2×2)
1000=PV×1.16985856
PV×1.16985856=1000
PV=1000/(1.16985856)
PV= 854.80
Principal Amount=854.80
Find the number of year and the fraction of years in which a sum of money will treble itself at compound interest at 8% per annum.
here,
let present value or principal amount pv=100
so, future value Fv= 100×3=300
rate of interest r=8%=.08
Number of year n= ?
we know,
Fv =pv〖(1+r)〗^n
300=100〖(1+r)〗^n
100(1+r)^n=300
(1+r)^n=300/100
(1+r)^n=3
log(1+.08)^n=log3
n log1.08=log3
n=log3/(log1.08)
n=(.477121254)/(.033423755)
n=14.27 years. (Ans)
Present Value
Example:
What sum should be paid for an annuity of tk 2400 for 20 years at 4.50% compound interest per annum?
Solution:
here,
Annual installment A= 2400
Rate of interest r= 4.5%=(4.5)/100=.045
Number of year n=20
Pv=?
We know,
Pv = A/r{1-1/(1+r)^n }
= 2400/(.045) {1-1/〖(1+.045)〗^20 }
= 2400/(.045) {1-.414642859}
=53,333.33×.58535714
=31,219.05
so, present value tk. 31,219.05 . (Ans)
A loan of tk. 40,000 is to repaid in equal annual installment consisting of principal and interest due in course of 30 years. Find the amount of each installment reckoning interest at 4% per annum.
Solution:
here,
pv=40000
r=4%= 4/100=.04
n=30 years
A=?
we know,
Pv = A/r{1-1/(1+r)^n }
40000=A/(.04) {1-1/〖(1+.04)〗^30 }
40000=A/(.04) (1-.308318668)
40000=A×17.2920333
A×17.2920333=40000
A=40000/(17.2920333)
A=2,313.20
So Annual installment tk. 2,313.20 (Ans)
A man Borrows Tk.1,000 on the understanding that it is to be paid back in four equal installments at intervals of six months the first payment to be made six months after the money was borrowed . Calculate the amount of each installment reckoning compound interest at 2.5% per half year.
Solutions:
Pv= 1000
r=2.5%×2=5%=.05
m=2
n=2
A=?
we know,
Pv = A/□(r/m){1-1/(1+□(r/m))^nm }
1000=A/□((.05)/2) {1-1/(1+□((.05)/2))^(2×2) }
1000=A/(.025) {1-.905950644}
1000=A×3.761974208
A×3.761974208=1000
A=1000/(3.761974208)
A=265.82
So installment Tk.265.82 (Ans)
Future Value
Calculate the amount of future value of an annuity of tk3000 for 15 years if the rate of interest be 4.50% per annum.
Solution:
here
Annual installment A=3000
rate of interest R= 4.50%=(4.50)/100=.045
number of year n= 15
FV=?
we Know
FV= A/r{(1+r)^n-1}
= 3000/(.045) {(1+.045)^15-1}
=66,666.67(1.935282443-1)
=62,352.16
So the amount of future value tk.62,352.16
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Online Education BD

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Indepth Analysis through 300+ lectures and case studies for CA / CFA / CPA / CMA / MBA Finance Exams and Professionals
------------------------------------------------------------------------------------------------------------------------
Welcome to one of the comprehensive ever course on Financial Management – relevant for any one aspiring to understand Financial Management and useful for students pursing courses like CA / CMA / CS / CFA / CPA, etc. A Course with close to 300 lectures explaining each and every concept in Financial Management followed by Solved Case Studies (Video), Conversational Style Articles explaining the concepts, Hand outs for download, Quizzes and what not??
------------------------------------------------------------------------------------------------------------------------
This course is about Financial Management. By taking up this course, you will have opportunity to learn the all facets of Financial Management.
Knowledge on Financial Management is important for every Entrepreneur and Finance Managers. Ignorance in Financial Management can be disastrous because it would invite serious trouble for the very functioning of the organisation.
This is a comprehensive course, covering each and every topic in detail. In this course,you will learn the Financial Management basic concepts, theories, and techniques which deals with conceptual frame work. Following topics will be covered in this course
a) Introduction to Financial Management (covering role of CFO, difference between Financial Management, Accounting and other disciplines)
b) Time Value of Money
c) Financial Analysis through Ratios (covering ratios for performance evaluation and financial health, application of ratio analysis in decision making).
d) Financial Analysis through Cash Flow Statement
e) Financial Analysis through Fund Flow Statement
f) Cost of Capital of Business (Weighted Average Cost of Capital and Marginal Cost of Capital)
g) Capital Structuring Decisions (Capital Structuring Patterns, Designing optimum capital structure, Capital Structure Theories).
h) Leverage Analysis (Operating Leverage, Financial Leverage and Combined Leverage)
I) Various Sources of Finance
j) Capital Budgeting Decisions (Payback, ARR, MPV, IRR, MIRR)
k) Working Capital Management (Working Capital Cycle, Cash Cost, Budgetary Control, Inventory Management, Receivables Management, Payables Management, Treasury Management)
This course is structured in self learning style.
It will have good number of video lectures covering all the above topics discussed.
Simple English used for presentation.
Take this course to understand Financial Management comprehensively.
Mandatory Disclosure regarding course contents:
This course is basically a bundle of following courses:
a) Time Value of Money
b) Cash Flow Statement Analysis
c) Fund Flow Statement Analysis
d) Finance Management Ratio Analysis
e) Learn how to find cost of funds
f) Learn Capital Structuring
g) Learn NPV and IRR Techniques
h) Working Capital Management.
If you are purchasing this course, make sure you don't purchase the above courses.
Also note, this course is also bundled in comprehensive course named
Accounting, Finance and Banking - A Comprehensive Study.
So if you are purchasing above course, make sure you don't purchase this course.
• Category:
Business
What's in the Course?
1. Over 346 lectures and 48 hours of content!
2. Understand Basics of Financial Management
3. Understand Importance of Time Value of Money
4. Understand Financial Ratio Analysis
5. Understand Cash Flow Analysis
6. Understand Fund Flow Analysis
7. Understand Cost of Capital
8. Understand Capital Structuring
9. Understand Capital Budgeting Process
10. Understand Working Capital Management
11. Understand Various sources of Finance
Course Requirements:
1. Students can approach with fresh mind
Who Should Attend?
1. Any one who wants to learn Financial Management comprehensively
2. MBA (Finance) students
3. CA / CMA / CS / CFA / CPA / CIMA

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This is a quick tutorial on how to use HP 10bII+. The tutorial covers how to calculate: future value, present value, annuity, and net present value (NPV).
You can find web-based practice problems at http://tinyurl.com/hp10biiplus.
I recorded this faceless tutorial as a Teaching Assistant for ACC 312 (Fundamentals of Managerial Accounting) in Spring 2014.

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Daehyun Kim

In the examples solved in this video (compiled by Andrew Rossman), P/Y & C/Y are left at their default values. That is, P/Y=C/Y =1. For examples that require changing P/Y and C/Y, please see the following playlist:
https://www.youtube.com/playlist?list=PLD3fYc0bAjC-gmXXegedT3l9mLa8YjhK5
Problems Solved:
Example 1: Laura takes a 15-year, $500 000 mortgage, on a new condo. At an interest rate of 4% (that is compounded monthly), what is the monthly payment?
Example 2:Helene is planning ahead for her daughter Paula’s college tuition. Paula begins college in 5 years and will need $80,000. How much would Helene have to invest today at 6% compounded annually to have $80,000 in 5 years?
Example 3: Josh has an investment account with $50,000. If Josh earns 6% per year and contributes $400 each month, how much will his investments be worth in 10 years?
Example 4: Steven has $25,000 in credit card debt. His credit card charges 2% in monthly interest and Steven pays $1,000 each month toward the balance. If Steven doesn’t make any further purchases, how many months will it take to fully repay his debt?
Example 5: Martin’s savings account has $25,000 today. In 5 years, the account is worth $32,000. What is the annual interest rate?

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Joshua Emmanuel

Hello friends! In this video you will learn the following concepts:
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Annuities : Annuity Due , Finding Future Value ?
Time value of money?
Future value?
Present value?
Annuity Introduction& Formula ?
Meaning and types of Annuity?
What is an ANNUITY and how does it work?
Types of annuities?
How to remember its formulas?
What are the advantages of annuities?
Ordinary annuity?
Annuity due?
How to solve annuity problems?
One of the most common topics asked in JAIIB in Accounting and Finance Management.

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GrowYourself

This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example.
Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com
To like us on Facebook, visit https://www.facebook.com/Edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
https://facebook.com/Prof.Michael.McLaughlin
To follow Michael on Twitter, visit
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Edspira

Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity,
bond indenture, Bonds payable, covenants, Long-term notes payable, Secured, Unsecured bonds, Term, Serial, and Callable bonds, Convertible, Commodity-Backed, Deep-Discount bonds, Registered bonds, Bearer bonds, coupon bonds, Income, Revenue bonds, Bond valuation, bond pricing, bond interest expense, par value, amortization, straight line method, effective interest rate method, bond discount, bond premium, carrying value of bond, premium, discount, bond issue between interest dates, CPA EXAM

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Farhat's Accounting Lectures

Present Value of an Annuity excel formula, calculation and concept explained in hindi with examples. How to calculate Present value of annuity in Excel and manually? Eg. you can calculate Present Value of monthly Rent that you get from a lease.
Related Videos:
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Present Value - https://youtu.be/pxm-5MBO2dg
Future Value - https://youtu.be/BFRGWenwulc
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Future Value of Uneven Cash Flows - https://youtu.be/yHoTUk8HP-c
Net Present Value (NPV) - https://youtu.be/SpHIBfPGwx8
Internal Rate of Return (IRR) - https://youtu.be/x6eXfx2Tv-w
इस हिंदी वीडियो में प्रेज़ेंट वैल्यू ऑफ़ एन्युटी को उदहारण के साथ समझाया गया है।
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In this video, we have explained:
What is the present value of an annuity?
How to calculate the present value with an annuity?
What is the concept of present value of an annuity?
What are the basics of the time value of money?
How to calculate the present value of an annuity in Microsoft Excel or Google spreadsheet?
What is the calculation formula of the present value of an annuity?
What is the meaning of the present value of an annuity?
How to calculate the present value of a rental income?
How present value of companies are calculated?
How to calculate the present value of annuity for any fixed income?
Make sure to Like and Share this video.
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Hope you liked this video in Hindi on “Present Value of an Annuity”.

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Asset Yogi

Present Value calculation, concept and excel formula explained in hindi. What discount rate should we take while calculating Present Value of a single m cash flow? This concept is used in valuation of a business, project or while analysing an investment.
Related Videos:
Time Value of Money - https://youtu.be/Pazp1b2LhAQ
Present Value of an Annuity - https://youtu.be/0giLqLyijtc
Future Value - https://youtu.be/BFRGWenwulc
Future Value of an Annuity - https://youtu.be/f6a7E3326QQ
Future Value of Uneven Cash Flows - https://youtu.be/yHoTUk8HP-c
Net Present Value (NPV) - https://youtu.be/SpHIBfPGwx8
Internal Rate of Return (IRR) - https://youtu.be/x6eXfx2Tv-w
प्रेज़ेंट वैल्यू कैलकुलेशन, कांसेप्ट और एक्सेल फॉर्मूला के बारेमें इस विद्ये में समझाया गया है। किसी सिंगल कैश फ्लो के प्रेज़ेंट वैल्यू की कैलकुलेशन करते समय हमें क्या डिस्काउंट रेटलेनी चाहिए? इस कांसेप्ट का उपयोग किसी बिज़नेस, प्रोजेक्ट या इन्वेस्टमेंट का विश्लेषण करते समय किया जाता है।
Share this Video:
https://youtu.be/pxm-5MBO2dg
Subscribe To Our Channel and Get More Property and Real Estate Tips:
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If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter.
In this video, we have explained:
What is present value?
What is the concept of present value?
How to calculate the present value for any investment?
How present value calculation can be used to calculate the value of returns of business or projects?
How to calculate the present value of money?
What is the difference between present value and future value?
How to calculate the present value in Microsoft Excel sheet?
How present value of perpetuity?
What is the present value calculation method?
What is the calculation formula for calculating the present value?
How present value calculation formula is used in excel sheet?
Make sure to Like and Share this video.
Other Great Resources
AssetYogi – http://assetyogi.com/
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Hope you liked this video in Hindi on “Present Value”.

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Asset Yogi

Chapter 6 - Accounting & the Time Value of Money

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Time value of money, simple interest, compound interest, present value of 1, future value of 1, present value of ordinary annuity, present value of annuity due, future value of annuity, future value of money, cpa exam

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Farhat's Accounting Lectures

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. TVM is also referred to as present discounted value.
On this channel, we are going to complete the entire chapter. Please prepare proper notes and we have covered entire latest ICAI study material and practice manual. Students need not refer any other reference material. Further, provide your doubts in the comment box.
In this video, we have covered two concepts:
Concept No. 3: How to compute Effective Rate of Interest (EIR).
Concept No. 4: How to compute present value (PV) of a single cash flows.
Link for notes: https://drive.google.com/open?id=15-fJxiXmcmk3gTudZ_8Tv10VPAx0CCJs

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The Wall Street School

Here's Prof. Manoj Datwani explaining time Value of Money.
Topics covered include:
1. Value of Money
2. Present Value
3. Future Value
4. Relationship between Present Value and Future Value [PV & FV]
5. Discounting Factor
6. Annuity
7. Perpetuity
8. Sinking Fund
For any query or help, please reach out to us on 9029083303
To know more about us, visit www.qli.co.in

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QLI Coaching For CA CS Official Videos

In this lecture I have been discussing the concept and procedure to calculate the Present Value of Perpetuity. One example also solved in the end for better understanding of the topic.
For full course, Whatsapp on : +91-8800215448
🔴 Download Notes: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
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#FM #TVM #Perpetuity

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time value of money simple and compound interest rate

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Ibrahim Hafez

The second lecture of the Corporate Finance series is actually broken up into two sub-lectures: single and multiple cash flows. If you are going to make decisions that impact firm value, it is helpful to be able to measure value, which we do through the time value of money model. In this lecture I strive for an in-depth understanding (not memorization) of this topic beginning with single cash flow principles. In the follow-up lecture on multiple cash flows I conclude with a challenging "real world" example and suggest that if you understand this, then you truly have a solid grasp of this topic.

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R. Agatha Managerial Accounting - Capital Investment Decisions and the Time Value of Moneuy

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