0.1 Chapter Zero Learning Objectives
Learning Objectives: Review of the Time Value of Money
In this chapter, you will:
- Calculate Simple Future- and Present-Values both mathematically and with a simple calculator, and by using an Interests Rates Tables.
- Apply the Three Commandments of the Time Value of Money (“TVM”).
- Consider the curvilinear nature of compound interest and “TVM.”
- Compare the relative volatilities of short-term versus long-term cash flows.
- Derive the additive nature of Annuities.
- Calculate both Future- and Present-Value Annuity dollar values, using a simple calculator and Annuity Tables.
- Determine the total amount of interest paid on a mortgage over time in comparison to the principal originally borrowed.
