Description
In this course, “Time-based Valuation of Money,” students will delve into fundamental concepts that underpin financial decision-making. Beginning with a comprehensive exploration of the Time Value of Money, participants will gain a solid understanding of how the value of money changes over time. The course progresses to demystify the Effective Annual Rate of Interest (EAR), elucidating both its significance and calculation methods. Practical skills in determining the Future Value of a Single Amount, Present Value of a Single Cash Flow, Future Value of an Annuity, and Present Value of an Annuity will be honed. Further, participants will learn to navigate the intricacies of Future Value of an Annuity Due, Future Value of a Growing Annuity, Present Value of a Perpetuity, and Present Value of a Growing Perpetuity. Through a blend of theoretical insights and hands-on calculations, students will develop a robust toolkit for evaluating the temporal dimension of financial transactions, enabling them to make informed decisions. By the end of this course, participants will possess a mastery of time-based valuation principles essential for effective financial planning and analysis.