FREE COURSE:

What You Will Learn In This Course?

A. Interpret interest rates as required rates of return, discount rates, or opportunity costs;

B. Explain an interest rate as the sum of a real risk-free rate and premiums that compensate investors for bearing distinct types of risk;

C. Calculate and interpret the effective annual rate, given the stated Annual interest rate and the frequency of compounding;

D. Calculate the solution for time value of money problems with different frequencies of compounding;

E. calculate and interpret the future value (FV) and present value (PV) of a single sum of money, an ordinary annuity, an annuity due, a perpetuity (PV only), and a series of unequal cash flows;

F. Demonstrate the use of a time line in modeling and solving time value of money problems.