Time value of money with excel

1. BIKRAM SHAH
MBA(Banking & Finance)

3. 1. Inflation
2. Future Value (Compounding Technique)
3. Present Value (Discounting Technique)
4. Mutual Fund
5. Sites for Financial know ledges & Planning
OUR DISCUSSION

4. 1. What will be the value of Rs. 1000 after 20
Years.
2. What would had the value of Rs.1000 before 20
Years.
3. If you need Rs. 100000 every year for 10 years,
what amount you should have deposited in your
account, today?
4. If you deposit Rs. 100000 every year for 10
years, what will be the total value of money at the
last?

6. 1. Basic Rule of Financial Management
2. To planning & achieve the Financial Goal
3. To reduce the Financial Risk
4. In valuation of property, securities, companies
etc.
5. To know the value of money in different period
horizon.
IMPORTANT OF TIME VALUE OF MONEY

7. TIME VALUE OF MONEY
-Rs. 1 of today is more valuable than the Rs. 1
of tomorrow.
- Time is Money.
-

8. 1. Rates of return or Inflation
2. Future Value (Compounding Technique)
3. Present Value (Discounting Technique)
OUR DISCUSSION

9. INFLATION OR RATE
- Inflation is the increasing in the general price level in
the economy or of the products for the long period of
time.
- Decreasing in the value of money or increase in
quantity of money.

10. 1. What will be the value of Rs. 1000 after 15
Years.
- It is a technique of calculating Future Value
from Present Value
Future Value (Compounding Technique)
FV = PV (1 + R)^n
Where,
FV = Future Value
PV = Present Value
R = Inflation or Rate of return
N = No. of Period

11. 2. What would had the value of Rs.1000 before 20
Years.
- It is a technique of calculating Present Value
from Future Value
Present Value (Discounting Technique)
PV = FV/(1+R)^n
Where,
PV = Present Value
FV = Future Value
R = Inflation rate or Rate of return
N = No. of period

12. 3. If you need Rs. 100000 every year for 10 years, what amount you
should have deposited in your account today?
PRESENT VALU OF ANNUTY
- Determines the present values of numbers of serious of future
periodic payment.
PV = CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …..CFn/(1+r)n
Where,
CF = Cash Flow
R = Rate of return
- What is the present value of your future annuity cash flow?

13. FUTURE VALU OF ANNUTY
-- Determines the future values of numbers of serious of periodic payment.
- What is the future value of present annuity cash flow.
4. If you deposit Rs. 100000 every year for 10 years, what will be the total
value of money at the last?
FV = CF1(1+r)^n + CF2(1+r)^2 + … CFn(1+r)^n
Where,
CF = Cash Flow
R = Rate of return

14. MUTUAL FUND
1
2
3
4

15. SITES FOR INVESTORS KNOWLEDGE
1. https://www.exceldemy.com/free-online-excel-course-with-certificates/
2. https://www.educba.com
1. https://www.open2study.com
2. MNCs Website
3. https://www.valueresearchonline.com/?
4. https://www.moneycontrol.com

16. THANK YOU