3. Compound Interest
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3. Compound Interest

This course will show you the power of compound interest and reinforce the time value of money.
4.0 (2 ratings)
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.
569 students enrolled
Created by Helen Dakin
Last updated 2/2014
English
Current price: $10 Original price: $20 Discount: 50% off
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Includes:
  • 1.5 hours on-demand video
  • 1 Article
  • 4 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What Will I Learn?
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
View Curriculum
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/#/
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/

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
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Curriculum For This Course
Expand All 21 Lectures Collapse All 21 Lectures 02:09:20
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Compound Interest - Introduction and the Future Value formula
6 Lectures 14:05

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.

Preview 8 pages




Future Value - example 4 - rate change
05:18

future value
2 questions
+
Compound Interest - the Present Value formula
4 Lectures 13:05
Present Value - example 1
02:23


Present Value - example 3
03:20

Present Value - example 4 - rate change
05:08

present value
2 questions
+
Solving for the Term or the Interest Rate and Equivalent Rates
5 Lectures 40:35

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.

Preview 9 pages

Solving for the Nominal Interest Rate
09:00

the rate
1 question

Solving for the Number of Interest Periods (n)
08:46

number of periods
2 questions

Equivalent Rates - examples 1 and 2
11:26

Equivalent Rates - examples 3-5
11:23

equivalent rates
2 questions
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Equivalent Payments and Equations of Value
6 Lectures 36:30

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.

Preview 6 pages

Equivalent Payments
11:49

Equations of Value - example 1
05:41

Equations of Value - ex 2
09:36

Equations of Value - ex 3
09:18

About the Instructor
Helen Dakin
4.1 Average rating
15 Reviews
1,698 Students
10 Courses
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.