
Master compounding and compound interest, and apply discounting and the discount rate to calculate present value and future value from cash flows.
Explain the future value of an annuity due with payments at the beginning. Using 12 percent per annum, rupees five thousand yearly over 30 years yields rupees 1,351,462.
Calculate the future value of an annuity with other compounding periods by splitting the annual rate into per-period rate and adjusting the duration, illustrated with quarterly, monthly, and semiannual examples.
Calculate the present value of an annuity due in Excel using the PV function, with rate 7%, 20 periods, 50,000 per year, first payment today.
Learn to calculate the present value of an annuity due in Excel using the PV function with type 1 for beginning payments across 60 monthly periods with different compounding.
Use Excel's NPER function to compute the finite number of periods in annuity payments needed to reach a financial goal, given an initial deposit, annual savings, and 12 percent return.
Learn to calculate the interest portion of each loan installment using Excel's IPMT function, showing how early payments are mostly interest and later payments are principal.
learn to calculate cumulative interest paid on a loan using Excel's CUMIPMT, for the first year or last year, and reflect it as a profit and loss account expense.
Calculate the effective annual rate from nominal rates and compounding using Excel's EFFECT function. Understand how semiannual and monthly compounding affect the EAR to compare bank offers.
Learn to compute a loan amortization schedule from the lender’s perspective using excel functions like pmed and ibm to determine the installment, interest portion, and principal portion.
Many Banks, NBFCs, Hire-Purchase Companies, Leasing Companies recruit thousands of candidates with thorough knowledge in time value of money concepts and expertise in MS-Excel as Personal Banker, Credit Analyst, Loan Officer, Product Manager (Loan) etc. Search job portals with these designations, for your surprise you find thousands of openings at any given point of time. In this course you will learn practical applications of time value of money like savings growth, recurring deposits, pension funds, EMI calculation, Loan Schedules, sinking fund etc.
This course introduces you to the concepts of time value of money and shows you how to perform important calculations life future value, future value of annuity, present value, present value of annuity using Microsoft Excel. In this course, you will develop a solid understanding of the time value of money that prepare you to make smart business decisions.