3. Compound Interest

This course will show you the power of compound interest and reinforce the time value of money.
3.0 (1 rating)
Instead of using a simple lifetime average, Udemy calculates a
course's star rating by considering a number of different factors
such as the number of ratings, the age of ratings, and the
likelihood of fraudulent ratings.
568 students enrolled
Instructed by Helen Dakin Business / Finance
25% off
Take This Course
  • Lectures 21
  • Length 2 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
Wishlisted Wishlist

How taking a course works


Find online courses made by experts from around the world.


Take your courses with you and learn anywhere, anytime.


Learn and practice real-world skills and achieve your goals.

About This Course

Published 2/2014 English

Course Description

In this course, you will learn how to determine the maturity value of an investment using compound interest. You will also be able to determine the present value if you are provided with the future value. You will be provided with a base set of course notes which you can use while you are watching the videotaped lectures. The course will take about 3-4 days to complete but this may vary among different students. There are lots of quizzes built in throughout the course to test your understanding of the materials at different stages.

To fully appreciate the concepts of Compound Interest and how time and rates affect the value of money, you may wish to go over the Basics of Simple Interest (which is a free course) at https://www.udemy.com/principles-of-simple-interest/

What are the requirements?

  • you will need a scientific calculator with an exponent key and at least one memory storage location. A financial calculator would be even better.
  • you will need to have a good understanding of the time value of money
  • you may complete the pre-requisite course on Simple Interest as many of the concepts discussed in Simple Interest are repeated for Compound Interest (only the formulas are different).
  • Simple Interest (a free course) is located at: https://www.udemy.com/principles-of-simple-interest/#/

What am I going to get from this course?

  • you will be able to determine the compound interest earned on an investment over a given period of time (even if the rate changes)
  • you will be able to determine the cash value of a payment due in the future
  • you will be able to discount more than one payment due in the future to come up with an equivalent cash value for all
  • you will be able to solve for the nominal interest rate of an investment
  • you will be able to determine the number of interest periods required for an investment to have a specified maturity value

Who is the target audience?

  • students who are taking a mathematics of finance course
  • business students
  • students who need an additional resource for compound interest calculations

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.


Section 1: Compound Interest - Introduction and the Future Value formula
The Compound Interest Formulas
2 pages
8 pages

These will serve as your lecture notes while you are viewing the videos. Print them in advance and use them to make your notes while you are solving the problems.

Future Value - example 1
Future Value - example 2
Future Value - example 3
Future Value - example 4 - rate change
future value
2 questions
Section 2: Compound Interest - the Present Value formula
Present Value - example 1
Present Value - example 2
Present Value - example 3
Present Value - example 4 - rate change
present value
2 questions
Section 3: Solving for the Term or the Interest Rate and Equivalent Rates
9 pages

These will serve as your lecture notes while you are viewing the videos. Print them in advance and use them to make your notes while you are solving the problems.

Solving for the Nominal Interest Rate
the rate
1 question
Solving for the Number of Interest Periods (n)
number of periods
2 questions
Equivalent Rates - examples 1 and 2
Equivalent Rates - examples 3-5
equivalent rates
2 questions
Section 4: Equivalent Payments and Equations of Value
6 pages

These will serve as your lecture notes while you are viewing the videos. Print them in advance and use them to make your notes while you are solving the problems.

Equivalent Payments
Equations of Value - example 1
Equations of Value - ex 2
Equations of Value - ex 3
Interesting Web Links

Students Who Viewed This Course Also Viewed

  • Loading
  • Loading
  • Loading

Instructor Biography

Helen Dakin, Learning & Development (L&D)

Hi. I hold a 4 year Bachelor of Mathematics degree from the University of Waterloo and a B Ed (Honours) from the University of Western Ontario. While I have been trained as a high school mathematics educator, I have had the pleasure of teaching mathematics at the post secondary level for four community colleges in southern Ontario. When I am not teaching, I like to fool around with my camera, muck about in my garden, read a good book and sail around in my boat. Not necessarily in that order. Browse through all of my Udemy courses on Mathematics of Finance.

Ready to start learning?
Take This Course