Explain the mechanics of compounding and bringing the value of money back to the present. Describe annuities. Determine the future or present value of a sum when there are non-annual compounding periods. Determine the present value of an uneven stream of payments and understand perpetuities. The Time Value of Money The concept of the time value of money is introduced; that is, a dollar today is worth more than a dollar received a year from now. If we are to compare projects and financial strategies logically, we must either move all dollar flows back to the present or out to some common future date.

Discuss at least 3 compelling topics that you have learned. Discuss at least three of the learning objectives, showing their possible impact on your future business career.

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Three compelling topics that I have learnt are time value of money annuities and compounding To begin with as someone who aspires to be an investor understanding the concept of time of value of money ... View the full answer