Introduction to Time Value of Money (TVM)

Introduction to Time Value of Money (TVM)

This course is part of Foundational Finance for Strategic Decision Making Specialization

Instructor: Gautam Kaul

Access provided by Masterflex LLC, Part of Avantor

38,712 already enrolled

4 modules

Gain insight into a topic and learn the fundamentals.

964 reviews

Beginner level

Recommended experience

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

96%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

964 reviews

Beginner level

Recommended experience

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

96%

Most learners liked this course

What you'll learn

To be able to understand and apply one of the two main building blocks of finance - Time Value of Money (TVM)
To evaluate alternatives
To make decisions

Skills you'll gain

Tools you'll learn

Microsoft Excel

Details to know

Shareable certificate

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Assessments

4 assignments

Taught in English

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This course is part of the Foundational Finance for Strategic Decision Making Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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There are 4 modules in this course

The strength of finance is that it takes a structured approach to decision making, with one key building block underlying all decisions — understanding the value of time, or the Time Value of Money (TVM). In this course, we will develop this building block using introductory, and simple, applications. We will learn about the Time Value of Money (TVM), Simple Future Value (FV) , Simple Present Value (PV) , Future Value of Annuity, Loans, compounding, and Valuing Perpetuities. We will introduce the framework in a carefully structured and replicable way to prepare you to explore more advanced applications in the rest of the specialization. In the follow-on courses, we will expand the applications to more complex real-world decisions.

After completing this course, you will have an understanding of how the value of money changes over time. You will understand the implications of all your financial decisions, including saving for the future through different channels and borrowing for future needs. You will leave with the practical knowledge needed to make informed decisions on a wide range of financial decisions. This course is part of the four-course Foundational Finance for Strategic Decision Making Specialization.

This week, we introduce the framework of time value of money (TVM) in a carefully structured way, with a focus on Future Value using relatively simple applications. As mentioned in the Syllabus, all concepts are introduced using examples and you are strongly encouraged to pause the videos and do every problem.

What's included

6 videos4 readings

6 videos Total 64 minutes

About This Specialization 1 minute
1.1 Time Value of Money 12 minutes
1.2 Simple Future Value (FV) 15 minutes
1.3 Simple FV... 10 minutes
1.4 Simple FV: Example 20 minutes
1.5 Simple FV: Example 2 6 minutes

4 readings Total 105 minutes

Specialization Syllabus 45 minutes
Course 1 Syllabus 20 minutes
Note-Formulae 30 minutes
Pre-Course Survey 10 minutes

During this second week, we build on Week 1 and move to the much more often used concept of Present Value. We again use simple examples, focusing on situations we confront on a daily basis. All concepts are introduced using examples that you need to do yourself to stay on top of the concepts. The second week also provides you an opportunity to test your knowledge up to this point with a required submission of the first graded assignment.

What's included

2 videos1 reading2 assignments

During this week, we will progress to more complex concepts and applications of finance.

What's included

5 videos1 reading

This week ends the course with relatively complex applications of finance. We spend a lot of time on understanding how borrowing and lending really works. You will also get an opportunity to test your understanding of the basic principles of time value of money by submitting the second assignment for the course. You will also learn how top use Excel and show your competence in doing so.

What's included

4 videos2 readings2 assignments

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Instructor

Instructor ratings

(203 ratings)

Gautam Kaul

University of Michigan

24 Courses 133,550 learners

Offered by

University of Michigan

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Reviewed on Oct 4, 2020

Real good initiative from Prof. Kaul to clarify all possible doubts regarding the plinth of Finance, i.e., Time Value of Money. I consider myself to be fortunate.

Reviewed on Jun 7, 2020

Professor Gautam kaul is a really an excellent teacher... Thanks to him he helped me appreciate the course and helped me get attracted to finance... I loved the journey...

Reviewed on Apr 1, 2021

Professor Kaul showed passion for the course material. Lessons are to the point and informational. I would recommend to anyone introducing themselves to the subject of finance or economics.

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