Corporate Finance #8 Time Value of Money (PV & FV)

Name: Corporate Finance #8 Time Value of Money (PV & FV)
Rating: 4.4 (143 reviews)

Learn time value calculation (present value & future value) concepts from a Certified Public Accountant (CPA)

Created byRobert (Bob) Steele

Last updated 2/2022

English

What you'll learn

Explain what time value of money calculations are
List common time value of money calculations
Describe when time value of money calculations are useful
Compare multiple methods to calculate time value of money
Calculate time value of money using mathematical formulas
Calculate time value of money using tables
Calculate time value of money using Excel
Work problems involving present value calculations
Work problems involving present value of annuity calculations
Work problems involving future value calculations
Work problems involving future value of annuity calculations

Course content

3 sections • 72 lectures • 19h 45m total length

910 Time Value of Money Overview11:23
915 Present Value16:37
920 Present Value Months as Period3:58
923 Future Value12:41
Learn to calculate future value and compare it to present value using the formula F = P(1+i)^n. Use tables and Excel with goal seek to analyze investment returns and inflation.
927 Future Value Months As Period3:56
Explain future value with months as period by converting 12% annual to 1% monthly for five periods, using present value 10,000 to reach 10,510 with formulas, tables, and Excel FV.
930 Future Value vs Present Value6:13
933 Present Value Annuity13:50
Explore the present value of an annuity under the time value of money, comparing today’s $100 to future payments, using formula, tables, and Excel for capital budgeting.
936 Present Value Annuity Months as Period3:23
Calculate the present value of an annuity with monthly periods, a $10,000 payment, and a 12% annual rate, converted to 1% per month over three months, using tables and Excel.
939 Future Value Annuity11:27
942 Future Value Annuity Months3:55
Explains the future value of a monthly annuity, converting annual to monthly rate (12%/12), with three payments of 10,000, using tables and Excel to reach about 30,031.
945 Present Value Cash Flow Examples14:05
948 Future Value Cash Flow Examples9:02
951 Present Value Terms Used In Capital Budgeting8:00
Understand present value concepts in capital budgeting, including inflation effects, discount rate, hurdle rate, and internal rate of return, and apply discounting to cash flows.
954 Net Present Value Assumptions2:05
Explore net present value assumptions, including a constant discount rate over the project life and cash flows that occur at one point per period.

OneNote Resource0:01
911 Future Value FV Multiple Forms of Calculation20:37
912 Present Value (PV) Calculation – Multiple Ways14:08
Learn to calculate present value using math formula, Excel-style functions, and present value tables, examining rate, period, and rounding effects across multiple practice problems.
915 Future Value Compounded Annually vs Semiannually19:25
916 Present Value (PV) Decision Making15:18
compare receiving money today versus in the future using present value and a chosen discount rate to determine the optimal lump-sum versus waiting for future payments.
919 Present value Different Discount Rates Side by Side10:51
920 Present Value Planning Scenario22:41
Explore present value planning with scenarios for the present value of a lump sum and annuities, using a twelve percent rate to reach fifteen thousand in nine years.
921 Future Value of an Annuity18:25
922 Future Value Uneven Investments11:33
923 Present Value Annuity13:44
926 Present Value Annuity14:31
927 Present Value Uneven Payments16:29
Explore the present value of uneven payments by breaking into annuity and balloon components, applying present value of one and annuity formulas with Excel and tables.
929 Future Value of a Collectible8:22
930 Future Value of an Annuity10:00
931 Future Value - How Long to Double or Triple Investments15:51
933 Present Value - Estimate Stock Returns & Sale12:08
935 Future Value - Compounded Quarterly12:05
Compute the future value of a 150 present value with quarterly compounding at 16% over five years using PV × (1+r)^n, and apply Excel for calculations.
936 Future Value Compounded Annually, Quarterly, & Monthly16:21
940 How Much to Invest to Reach Goal - One Investment vs Annuity16:10
941 Use Annuity Calculation to Find Interest Rate13:13
944 Use Annuity Calculation to Find Interest Rate11:58
945 Use Annuity Calculation to Find Payment Amount10:32
947 Retirement Scenario PV Annuity & FV Annuity19:38
Apply present value and future value annuity calculations to retirement planning: determine the lump sum for 26,000 for 24 years and the annual savings needed for 25 years.
948 Present Value Uneven Payments20:21
950 Deferred Annuity15:57
Explore how to value a deferred annuity two years out using present value techniques, converting payments to present value either as an annuity or as individual payments at 14 percent.
952 FV of One & PV Annuity Loan - Uneven Repayment16:17
954 Home Loan Payment Calculation24:50
Learn how to compute a home loan payment using present value of an annuity, explore monthly versus yearly payments, and build an amortization table in Excel.
955 Future Value of Annuity Interest Rate Change24:57
Demonstrate reaching 400,000 with a 15-year semiannual annuity at 10%, then adjust after six payments for a 12% rate using goal seek and the FV and PMT functions in Excel.
956 PV & FV of Annuity College Savings Plan Adjustment23:35

911 Future Value FV Multiple Forms of Calculation26:05
912 Present Value (PV) Calculation – Multiple Ways26:21
Master present value calculations in Excel with multiple formats, using the PV function and table methods to convert future values into today’s dollars under varying discount rates.
915 Future Value Compounded Annually vs Semiannuall29:43
916 Present Value Decision Making21:08
919 Present Value Different Discount Rates Side by Side14:35
Explore present value and the time value of money in Excel, using different discount rates side-by-side and goal seek to equate 100,000 in 30 years to 20,000 today.
920 Present Value Planning Scenario27:17
Learn present value planning by solving PV and annuity problems with Excel formulas and tables, including scenarios like 15000 in 9 years at 12% and 8000 per period.
921 Future Value of an Annuity22:45
922 Future Value Uneven Investments16:45
923 Present Value Annuity14:16
926 Present Value Annuity13:52
927 Present Value Uneven Payments21:25
930 Future Value of an Annuity11:33
931 Future Value How Long to Double or Triple Investment18:21
Apply the future value formula to find how long to double or triple an investment, using Excel with Goal Seek, running balance tables, and present value, rate, and periods.
933 Present Value Estimate Stock Returns & Sale18:01
935 Future Value Compounded Quarterly13:32
936 Future Value Compounded Annually, Quarterly, & Monthly22:34
938 Present Value of an Annuity Payments at Beginning of Period15:19
Compute the present value of an annuity due with payments at the beginning of each period using Excel PV, running-balance, and annuity tables at 12% for 4500 per period.
939 Current Payment, Annuity, or Future Payment Alternatives16:37
940 How Much to Invest to Reach Goal – One Investment vs Annuity19:47
Explore how to reach a 30,000 goal in 10 years by comparing a lump-sum present value to an annuity, using Excel present value formulas, with goal seek to solve unknowns.
941 Future Value Calculate Investment Rate of Return14:59
944 Use Annuity Calculate to Find Interest Rate18:47
Explore how to back into the interest rate from an annuity using the present value of an annuity formula in Excel, and apply algebra, goal seek, and what-if analysis.
945 Use Annuity Calculation to Find Payment Amount17:27
947 Retirement Scenario PV Annuity & FV Annuity26:08
948 Present Value Uneven Payments27:08
Examine present value of uneven payments by computing value of one and of an annuity in Excel, using a 10% rate for three years plus seven years of 12k payments.
950 Deferred Annuity17:48
Learn to value a two-year deferred annuity of 25,000 payments over ten years at 14 percent using Excel, via annuity-to-lump-sum and PV of one methods.
952 FV of One & PV Annuity Loan – Uneven Repayment24:33
954 Home Loan Payment Calculation33:28
Learn to compute home loan payments using Excel, PV & FV concepts, annuities, and amortization for yearly vs monthly payments at 7% over 30 years.
955 Future Value of Annuity Interest Rate Change34:38
956 PV & FV of Annuity College Savings Plan Adjustment30:03

Requirements

A basic understanding of corporate finance concepts

Description

This course will cover time value of money concepts from a Corporate Finance perspective.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

Time value of money concepts become more and more important as we consider decisions that will extend further into the future.

Time value of money calculation are usually grouped into four categories, present value of one, present value of an annuity, future value of one, and future value of an annuity.

The calculation of time value of money concepts can be performed using different method, the method used generally depending on the circumstances. It is useful to understand all methods, even if we have a preferred one, so we can communicate to others no matter what method they use.

Time value of money calculation methods can be done using mathematical formulas, using tables, or using Excel & financial calculators.

This course will consider multiple methods, comparing them, showing when each may be used and the pros and cons of each.

Who this course is for:

Finance and business students
Business professionals
Anybody who wants to learn time value of money concepts in a practical and detailed way

Corporate Finance #8 Time Value of Money (PV & FV)

What you'll learn

Explore related topics

Course content

Introduction14 lectures • 2hr 1min

Practice Probs. - Time Value of Money (Present Value / Future Value)29 lectures • 7hr 30min

Excel Probs. - Time Value of Money (Present Value / Future Value)29 lectures • 10hr 15min

Requirements

Description

Who this course is for: