This section looks at key financial concepts being risk and return. The relationship between these two fundamental financial variables is reviewed and the section closes out with an illustrative example combining the concept of the time value of money and risk and return.
This section looks at how interest rates affect the time value of money. A further analysis is carried out in terms of simple vs compound interest and variable vs fixed rates of interest. An example illustrates the practical application of fixed vs variable interest rates.
This section helps you understand the concept of the present value and future value. It looks at the formulas that drive these calculations and teaches you how to use present value and future value tables. Illustrative examples are also included to help understand how to use these tables.
This section helps you understand the concept of the time value of money. It teaches one about interest and inflation and how this impacts the time value of money. It helps you understand the mechanics of the time value of money with a simple practical example.