This document outlines key concepts related to time value of money including: future value and present value calculations using formulas that take into account interest rate, time period, and frequency of compounding. It provides examples of how to determine future or present value of single and multiple cash flows, as well as annuities and perpetuities. Key terms defined include time value, compounding, discounting, and effective annual rate.
Time Value of Money (TVM), also known as present discounted value, refers to the notion that money available now is worth more than the same amount in the future, because of its ability to grow.
The term is similar to the concept of ‘time is money’, in the sense of the money itself, rather than one’s own time that is invested. As long as money can earn interest (which it can), it is worth more the sooner you get it.
this is a lecture on time value of money which explains the topic time value of money in a very easy and simple way... it also explains some examples on the topic... plus definition of rate of return, real rate of return, inflation premium, nominal interest rate,market risk, maturity risk,liquidity risk,and default risk,
TVM, Future Value Interest Factor (FVIF), Present Value Interest Factor (PVIF), present value interest factor of an annuity (PVIFA)
Using estimated rates of return, you can compare the value of the annuity payments to the lump sum.
The present value interest factor may only be calculated if the annuity payments are for a predetermined amount spanning a predetermined range of time.
Time Value of Money Formula
FV = PV x [ 1 + (i / n) ] (n x t)
Formula for Future Value Interest factor:
FVIF = (1+r)n
Formula for PVIF
PVIF = 1 / (1 + r)n
Time Value of Money (TVM), also known as present discounted value, refers to the notion that money available now is worth more than the same amount in the future, because of its ability to grow.
The term is similar to the concept of ‘time is money’, in the sense of the money itself, rather than one’s own time that is invested. As long as money can earn interest (which it can), it is worth more the sooner you get it.
this is a lecture on time value of money which explains the topic time value of money in a very easy and simple way... it also explains some examples on the topic... plus definition of rate of return, real rate of return, inflation premium, nominal interest rate,market risk, maturity risk,liquidity risk,and default risk,
TVM, Future Value Interest Factor (FVIF), Present Value Interest Factor (PVIF), present value interest factor of an annuity (PVIFA)
Using estimated rates of return, you can compare the value of the annuity payments to the lump sum.
The present value interest factor may only be calculated if the annuity payments are for a predetermined amount spanning a predetermined range of time.
Time Value of Money Formula
FV = PV x [ 1 + (i / n) ] (n x t)
Formula for Future Value Interest factor:
FVIF = (1+r)n
Formula for PVIF
PVIF = 1 / (1 + r)n
Introduction to Financial Analytics -Fundamentals of Finance Class I
by Reuben Ray; reuben@pexitics.com
• Time value of money.
• Present value & future value of money.
• Applications of TVM (Time Value of Money)
• Annuity & perpetuity concepts.
• Introduction to financial statements.
Time value of money | How Calculate Present Value of Money | How Calculate Future Value of Money.
YouTube Link For Video Concept: https://www.youtube.com/watch?v=_sJiiMkHBtE
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Financial Analytics -Fundamentals of Finance Class I
by Reuben Ray; reuben@pexitics.com
• Time value of money.
• Present value & future value of money.
• Applications of TVM (Time Value of Money)
• Annuity & perpetuity concepts.
• Introduction to financial statements.
Time value of money | How Calculate Present Value of Money | How Calculate Future Value of Money.
YouTube Link For Video Concept: https://www.youtube.com/watch?v=_sJiiMkHBtE
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
2. Outline
Meaning of Time Value
Concept of Future Value and Compounding (FV)
Concept of Present Value and Discounting (PV)
Frequency of Compounding
Present Value versus Future Value
Determining the Interest rate (r)
Determining the Time Period (n)
Future Value and Present Value of Multiple Cash Flows
Annuities and Perpetuities
3. Time Value of Money
Basic Problem:
– How to determine value today of cash flows that are expected in the
future?
Time value of money refers to the fact that a dollar in hand today
is worth more than a dollar promised at some time in the future
Which would you rather have -- $1,000 today or $1,000 in 5
years?
Obviously, $1,000 today.
Money received sooner rather than later allows one to use the
funds for investment or consumption purposes. This concept is
referred to as the TIME VALUE OF MONEY!!
TIME allows one the opportunity to postpone consumption and
earn INTEREST.
4. Future Value and Compounding
Future value refers to the amount of money an investment will grow to over some
length of time at some given interest rate
To determine the future value of a single cash flows, we need:
present value of the cash flow (PV)
interest rate (r), and
time period (n)
FVn = PV0 × (1 + r)n
Future Value Interest Factor at ‘r’ rate of interest for ‘n’ time
periods
Examples on computation of future value of a single cash flow
5. If you invested $2,000 today in an account that
pays 6% interest, with interest compounded
annually, how much will be in the account at the
end of two years if there are no withdrawals?
Future Value (Graphic)
0 1 2
$2,000
FV
6%
6. FV1 = PV (1+r)n
= $2,000 (1.06)2
= $2,247.20
Future Value (Formula)
FV = future value, a value at some future point in time
PV = present value, a value today which is usually designated as time 0
r = rate of interest per compounding period
n = number of compounding periods
Calculator Keystrokes: 1.06 (2nd yx) 2 x 2000 =
7. John wants to know how large his $5,000
deposit will become at an annual compound
interest rate of 8% at the end of 5 years.
Future Value (Example)
0 1 2 3 4 5
$5,000
FV5
8%
8.
Future Value Solution
Calculation based on general formula:
FVn = PV (1+r)n
FV5 = $5,000 (1+ 0.08)5
= $7,346.64
Calculator keystrokes: 1.08 2nd yx x 5000 =
9. Present Value and Discounting
The current value of future cash flows discounted at the appropriate
discount rate over some length of time period
Discounting is the process of translating a future value or a set of future
cash flows into a present value.
To compute present value of a single cash flow, we need:
Future value of the cash flow (FV)
Interest rate (r) and
Time Period (n)
PV0 = FVn / (1 + r)n
PVIF (r,n)
Examples
10. Assume that you need to have exactly $4,000 saved 10
years from now. How much must you deposit today in
an account that pays 6% interest, compounded annually,
so that you reach your goal of $4,000?
0 5 10
$4,000
6%
PV0
Present Value (Graphic)
12. Joann needs to know how large of a deposit to make
today so that the money will grow to $2,500 in 5 years.
Assume today’s deposit will grow at a compound rate
of 4% annually.
Present Value Example
0 1 2 3 4 5
$2,500
PV0
4%
13. Calculation based on general formula:
PV0 = FVn / (1+r)n
PV0 = $2,500/(1.04)5
= $2,054.81
Calculator keystrokes: 1.04 2nd yx 5 =
2nd 1/x X 2500 =
Present Value Solution
14. General Formula:
FVn = PV0(1 + [r/m])mn
n: Number of Years
m: Compounding Periods per Year
r: Annual Interest Rate
FVn,m: FV at the end of Year n
PV0: PV of the Cash Flow today
Frequency of
Compounding
15. Frequency of Compounding Example
Suppose you deposit $1,000 in an account that pays
12% interest, compounded quarterly. How much will
be in the account after eight years if there are no
withdrawals?
PV = $1,000
r = 12%/4 = 3% per quarter
n = 8 x 4 = 32 quarters
16. Solution based on formula:
FV= PV (1 + r)n
= 1,000(1.03)32
= 2,575.10
Calculator Keystrokes:
1.03 2nd yx 32 X 1000 =
17. Present Value versus Future Value
Present value factors are reciprocals of future value
factors
Interest rates and future value are positively related
Interest rates and present value are negatively related
Time period and future value are positively related
Time period and present value are negatively related
18. Determining the Interest Rate (r)
At what rate of interest should we invest our
money today to get a desired amount of money
after a certain number of years?
Essentially, we are trying to determine the
interest rate given present value (PV), future
value (FV), and time period (n)
Examples
The rate which money can be doubled/tripled
19. Determining the Time Period (n)
For how long should we invest money today to get a
desired amount of money in the future at a given rate
of interest
Determining the time period (n) for which a current
amount (PV) needs to be invested to get a certain
future value (FV) given a rate of interest (r).
Examples
The time period needed to double/triple our current
investment
20. Future Value of Multiple Uneven
Cash Flows
Compute the future value of each single cash
flow using future value formula and add them
up over all the cash flows
Example
21. Present Value of Multiple Uneven
Cash Flows
Compute the present value of each single cash
flow using present value formula and add them
over all the cash flows
Examples
22. Annuities
A series of level/even/equal sized cash flows
that occur at the end of each time period for a
fixed time period
Examples of Annuities:
Car Loans
House Mortgages
Insurance Policies
Some Lotteries
Retirement Money
23. Present Value of an Annuity
– Examples
Computing Cash Flow per period in annuity
– Examples
24. Perpetuities
A series of level/even/equal sized cash flows
that occur at the end of each period for an
infinite time period
Examples of Perpetuities:
Consoles issued by British Government
Preferred Stock
Present Value of a Perpetuity