Using the Time Value of Money to Make Financial Decisions
1h 37mBeginner2021-03-04
Authors
Jim Stice
Professor of Accounting at BYU
Kay Stice
Professor of Accounting at the BYU Marriott School of Management
Course details
Learn how understanding the time value of money can help you figure out loan payments, save for college and retirement, rent or buy a house, lease or purchase a car, and make long-term business decisions. Accounting professors Jim and Kay Stice explain the linked concepts of the time value of money and compound interest, show you how to calculate the time value of money in Microsoft Excel or on a calculator, and how to apply the time value of money to a variety of personal and professional financial scenarios.
Skills covered
Corporate FinanceFinance and AccountingOne-Off
Concepts
0. Introduction
- 01 - Making financial decisions
1. Time Value of Money Overview
- 02 - The time value of candy
- 03 - Overview of the time value of money terms
- 04 - Common time value of money misunderstandings
2. Impact of Internet Rate and Compounding Period
- 05 - Columbus and the power of compounding
- 06 - The impact of interest rates
- 07 - The impact of compounding periods
3. Doing Time Value of Money Computations with a Business Calculator
- 08 - The time value of money when buying a car
- 09 - Using business calculators
- 10 - Computing a car payment with a business calculator
- 11 - Computing a house payment with a business calculator
- 12 - Computing a house payment with a balloon payment at the end
- 13 - Computing the amount you can afford to borrow
4. Doing Time Value of Money Computations with Excel
- 14 - Mortgage amortization schedules
- 15 - Finding Excel financial functions
- 16 - Computing a car payment using Excel
- 17 - Computing a house payment using Excel
- 18 - Using Excel to construct a loan amortization schedule
- 19 - Computing an effective interest rate using Excel
5. Savings and Retirement
- 20 - Start saving early
- 21 - Growth in savings and the rule of 72
- 22 - Saving for a target amount for a house
- 23 - The importance of starting to save for retirement now
Review and Conclusion
- 24 - Time value of money dangers - A payday loan
- 25 - Where to go from here