Time Value of Money: Useful Applications ON DEMAND

Overview

The time value of money (TVM), a fundamental financial principle, explains the worth of money in relation to time; money received today is worth more than money received in the future. TVM has wide application; from personal financial decisions, and corporate finance, to real estate. Accountants should also have a working knowledge of TVM factors including compound interest, annuities, and present value because of their application to numerous types of business events and transactions. This accounting and the time value of money course explains the TVM concepts and their application to different financial and investment situations. A series of examples are presented to illustrate the calculations in detail to allow you to learn the application procedure for making sound financial decisions.

Highlights

Fundamentals. Practical applications.

Prerequisites

None.

Designed For

CPAs.

Objectives

Recognize the concepts of TVM, compounding, and discounting. Calculate the present value and future value of various financial transactions. Recognize how TVM affects the loan amortization. Identify the application of TVM to bond valuation.

Preparation

None.

Notice

None.