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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
Views: 171803 Edspira
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. Time value of money, time value of money lesson, tvm, tvm lesson, tvm formulas, time value of money formulas, present value formula, future value formula, present value, future value, annuity due, ordinary annuity, simple interest, compounding interest, intrayear compounding interest, perpetuity, present value of a perpetuity, how to present value, what is present value, what is time value of money
Views: 197835 Subjectmoney
Views: 117640 Edspira
Views: 157647 CA. Naresh Aggarwal
Views: 36638 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
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. Website: http://www.notepirate.com Follow us on Facebook: https://www.facebook.com/pages/Note-Pirate/514933148520001?ref=hl Follow us on Twitter: http://twitter.com/notepirate We appreciate all of the support you guys have given us. Be apart of the mission to help us reach more students by subscribing, thumbs upping and adding the videos to your favorites! ** Notepirate is privately owned and exclusive to Notepirate.com.**
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.
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
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
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: 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. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks & Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 1565 Learn to Invest
Views: 13450 Roger CPA Review
Views: 445983 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! Website: http://www.notepirate.com Follow us on Facebook: https://www.facebook.com/pages/Note-Pirate/514933148520001?ref=hl Follow us on Twitter: http://twitter.com/notepirate We appreciate all of the support you guys have given us. Be apart of the mission to help us reach more students by subscribing, thumbs upping and adding the videos to your favorites! ** Notepirate is privately owned and exclusive to Notepirate.com.**
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.
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Views: 9986 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
Views: 32194 CA. Naresh Aggarwal
Accounting 2 - ACCT 122 - Program #211 - Time Value of Money
Views: 9782 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 To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Views: 12790 Rutgers Accounting Web
Views: 26920 Online Education BD
Views: 7697 CARAJACLASSES
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.
Views: 136722 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?
Views: 115127 Joshua Emmanuel
Hello friends! In this video you will learn the following concepts: What is an Annuity? 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.
Views: 27146 GrowYourself
Views: 541510 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
Views: 15483 Asset Yogi
Views: 16612 Asset Yogi
Chapter 6 - Accounting & the Time Value of Money
Views: 443 Vincent Osaghae
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
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
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
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 🔴 Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal 🔴 Connect with Google+: https://plus.google.com/u/0/+CANareshAggarwal #FM #TVM #Perpetuity
Views: 5450 CA. Naresh Aggarwal
time value of money simple and compound interest rate
Views: 248 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.
Views: 13778 Understanding Finance
R. Agatha Managerial Accounting - Capital Investment Decisions and the Time Value of Moneuy
Views: 2944 Rachelle Agatha