Time Value of Money TVM (Slides)
23 Pages Posted: 20 Sep 2010 Last revised: 26 Feb 2013
Date Written: January 23, 2011
In this second chapter we deal with the Basic concept in Finance: the time value of Money. A dollar today is worth more than a dollar tomorrow. This concept allows us to find equivalent amounts of Money in different periods of time. This will enable us to compare different cash flow profiles. In the last part of the chapter we study the different structures of a debt schedule. We use intensively the spreadsheet.
Keywords: Time value of money, interest, discount process, annuities, real interest rate, discount rate, debt schedule
JEL Classification: G31
Suggested Citation: Suggested Citation