Unit 4: Time Value Of Money
Suppose you have the option of receiving $100 today or $200 in five years. Which option would you choose? How would you determine which is the better deal? Some of us would rather have less money today vs. wait for more money tomorrow. However, sometimes it pays to wait. Unit 4 introduces the concept of the time value of money and explains how to determine the value of money today versus tomorrow by using finance tools to assess present and future values.
Completing this unit should take you approximately 7 hours.
4.1: The Time Value of Money
4.2: Future Value and Compounding
4.3: Present Value and Discounting
4.4: Special Applications: Perpetuities, Annuities and Yields
Unit 4 Practice and Assessment