Finance for the Real World - Corporate Finance 101

Discover the time value of money by comparing present value and future value, including single payments and annuities, and bring multiple payments back to year zero.

Practice applying time value of money concepts by calculating present value, future value, and annuity payments at 3 percent, 4 percent, and 8 percent through example problems.

Learn how compounding grows wealth by reinvesting earnings. A thousand-dollar investment at 8 percent for 15 years shows the power of compound interest.

Explore the power of compounding interest by investing a thousand dollars at 8 percent, and contrast it with non-compounding where earnings are spent.

Compute the net present value for a 60,000 investment with 20,000 cash flows over four years at 8 percent, and identify the IRR of 12.59 percent and a three-year payback.

Learn to build a loan amortization schedule using time value of money to split monthly payments into principal and interest, illustrated with a 200,000 loan over 15 years at 5%.

Explore corporate debt types, including working capital lines, convertible bonds with embedded equity, mezzanine and syndicated loans, and how interest rates hinge on assets, earnings, credit history, and debt covenants.

Learn the basics of foreign currency conversion using exchange rates, with practical euro–usd examples like €200 ≈ $218 and $100 ≈ €91.75, and using online currency converters.