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Introducing Time Value of Money

Introducing Time Value of Money

Teacher:

Luc De Ceuster, MSc, PMP


Short Description:

The course "Introduction to Time Value of Money" is part of the larger course "Introduction to Finance," which will be available later.
The course provides you with the necessary information related to the principles of interest, compounded interest, and discounting of cash flows.
When dealing with investments and projects, it is important to evaluate their financial performance, and the elements in this course will provide you with the necessary knowledge.
Starting from investments, cash flows, and interest rates, basic principles like simple interest, compounded interest, discounting of cash flows, present value, and future value are defined practically.
Based on this, basic parameters (payback time and return on investment) and more advanced parameters like Net Present Value, Performance Index and Internal Rate of Return will be defined that you will need to evaluate the financial performance.

Content of the Course

  • Investments and Cash Flows
  • Simple and Compounded Interest
  • Different Compounding Periods and Effective Annual Rate
  • Present and Future Value, Annuities
  • Discounting Cash Flows and Calculations
  • Payback of Loans
  • Simple Financial Parameters (PBT and ROI)
  • Advanced Financial Parameters (NPV, PI, and IRR)
  • Final Quiz
  • Certificate of Successful Completion (after passing the Quiz)

Learning Outcomes
After completing this course, you will be able to:

  • Describe how investments and future cash flows are spread on the timeline
  • Explain the simple and compounded interest
  • Calculate the compounded interest over different compounding periods and determine the Effective Annual Rate
  • Determine the Present Value of a series of Future Cash Flows
  • Find the Future Value of Cash Flows and Annuities
  • Define different Financial Parameters like PBT, ROI, NPV, PI, and IRR
  • Explain the Limitations of and Differences of the Financial Parameters
$ 189.99
189.99 USD $ 189.99
$ 3,749.00
Responsible Luc De Ceuster
Last Update 06/12/2026
Completion Time 3 hours 51 minutes
Members 1
Basic Finance
  • Course Introduction (empty)
    2Lessons · 14 min
    • Introduction to the Course
    • Course Content
  • Section 1 - Investments, Cash Flows, and Interest (empty)
    4Lessons · 33 min
    • 1.1 - Investments and Cash Flows. Time Value of Money
    • 1.2 Principles of Simple and Compounded Interest
    • 1.3 Compounding Interest with Different Compounding Periods
    • 1.4 Effect of Compounding and the Equivalent Annual Rate (EAR)
  • Section 2 - Introducing Time Value of Money (empty)
    5Lessons · 1 hr 13 min
    • 2.1 Future and Present Value
    • 2.2 Future Value of a Single Investment
    • 2.3 Introducing Annuities
    • 2.4 Principles of Discounting Cash Flows
    • 2.5 Calculation of Present Value with Complex Cash Flows
  • Section 3 - Applications of Time Value of Money. Loans, PBT, ROI, NPV, and IRR (empty)
    7Lessons · 1 hr 51 min
    • 3.1 Payback of a Loan with Fixed Monthly Payments
    • 3.2 Payback of a Loan with Fixed Capital Payments
    • 3.3 Simple Financial Parameters: PayBack Time (PBT) and Return on Investment (ROI)
    • 3.4 Advanced Financial Parameters - Part 1: Defining Net Present Value (NPV) and the Profitability Index (PI)
    • 3.5 Application of NPV and PI in Excel
    • 3.6 Advanced Financial Parameters - Part 2: Defining the Internal Rate of Return (IRR)
    • 3.7 Calculating the IRR using the method of "Trial and Error"