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The Time Value of Money

  • Time Value of Money
  • The value of money received at different points in time, given a certain interest rate; present value versus future value.

  • Introduction to Interest
  • The difference between simple interest and compound interest; why compound interest grows so quickly compared to simple interest.

  • Interest Part 2
  • How to develop the formulas behind simple and compound interest, and an example of the striking difference between the two.

  • Introduction to Present Value
  • How to decide whether it is better to have a sum of money today or in the future.

  • Present Value 2
  • How to calculate the present value of different amounts of money received at different points in time.

  • Present Value 3
  • What happens to the present value of money when you change the discount rate (or interest rate)?

  • Introduction to Compound Interest
  • What compound interest is, how it works, and the math behind it.

  • The Rule of 72 for Compound Interest
  • How and why the Rule of 72 is an easy way to estimate the impact of compound interest.

  • Introduction to Continuous Compound Interest
  • How and why interest compounds (grows) over various time periods with a more detailed examination of the math behind the process.