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In this course, you will learn :
- Calculating the effect of interest rates and inflation
- Finding the arithmetic and geometric means of growth rates
- Calculating the future and present value of an investment
- Calculating loan payments for a fully amortized loan
- Calculating the effect of paying extra principal with each payment
- Finding the number of periods required to meet an investment goal
- Calculating net present value and internal rate of return
- Building a cash tracking worksheet
- Visualizing cash flows using a waterfall chart
Syllabus :
1. Introducing the Time Value of Money
- Calculate the effect of interest rates and inflation
- Find the arithmetic and geometric means of growth rates
- Determine the value of a perpetuity
- Calculate the future value of an investment
- Calculate the present value of an investment
- Calculate loan payments for a fully amortized loan
- Calculate principal and interest components of loan payments
- Calculate the effect of paying extra principal with each payment
- Find the number of periods required to meet an investment goal
2. Calculating Net Present Value and Internal Rate of Return
- Introduce net present value and internal rate of return
- Calculate the net present value of an investment
- Calculate net present value given irregular inputs
- Calculate internal rate of return
- Calculate internal rate of return for irregular cash flows
- Calculate internal rate of return for mixed cash flows
3. Tracking and Visualizing Cash Flows
- Build a cash tracking worksheet
- Visualize cash flows using a waterfall chart
- Visualize the change in principal and interest payment components
