Time Value of Money
This reading covers the time value of money (TVM) concepts. Calculation of future value and present value of a single cash flow, a series of uneven cash flows and an annuity are discussed. The impact of various compounding periods and finding TVM variable given other variables are also covered. For effective time management during exam you must learn to calculate TVM variables using your calculator. After the video you must practice all the chapter end questions of the CFA Institute curriculum.
Time Value of Money Concepts – Part I This video covers CFA Level I concepts related to:
- Interest rate as required rates of return, discount rates, or opportunity costs
- Interest rate as the sum of a real risk-free rate, expected inflation, and premiums that compensate
investors for distinct types of risk
- Compounding and discounting
- Calculation of effective annual rate
Time Value of Money Concepts – Part I This video covers CFA Level I concepts related to:
- Interest rate as required rates of return, discount rates, or opportunity costs
- Interest rate as the sum of a real risk-free rate, expected inflation, and premiums that compensate
investors for distinct types of risk
- Compounding and discounting
- Calculation of effective annual rate
Time Value of Money Concepts – Part I This video covers CFA Level I concepts related to:
- Interest rate as required rates of return, discount rates, or opportunity costs
- Interest rate as the sum of a real risk-free rate, expected inflation, and premiums that compensate
investors for distinct types of risk
- Compounding and discounting
- Calculation of effective annual rate