3. Compound Interest
- 1.5 hours on-demand video
- 1 article
- 4 downloadable resources
- Full lifetime access
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- Certificate of Completion
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- 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
- 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.
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 currency, you may wish to go over the learning materials found in the Basics of Simple Interest .
- students who are taking a mathematics of finance course
- business students
- students who need an additional resource for compound interest calculations