Introduction to Time Value of Money

Introduction to Time Value of Money

Moorad begins his introduction to the Time Value of Money by discussing interest rate conventions and calculations.
Overview

The time value of money is an essential concept in financial markets. The idea that money is worth more in the future requires an understanding of future value and compounding interest rates over different terms.

Key learning objectives:

  • Define the time value of money

  • Understand how to calculate compound interest

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