10.1 Chapter Ten: Learning Outcomes
Learning Outcomes
In this chapter, you will:
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Calculate Simple Future- and Present-Values both mathematically and with a simple calculator, and by using an Interests Rates Tables.
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Apply the Three Commandments of the Time Value of Money (TVM).
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Differentiate between simple interest and interest-on-interest.
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Consider the curvilinear nature of compound interest and TVM.
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Compare the relative volatilities of short-term versus long-term cash flows.
Note: Review questions for Chapters Ten and Eleven will appear at the end of Chapter Eleven.