Introduction
Making financial decisions
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1. Time Value of Money Overview
The time value of candy
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Overview of the time value of money terms
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Common time value of money misunderstandings
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2. Impact of Internet Rate and Compounding Period
Columbus and the power of compounding
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The impact of interest rates
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The impact of compounding periods
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3. Doing Time Value of Money Computations with a Business Calculator
The time value of money when buying a car
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Using business calculators
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Computing a car payment with a business calculator
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Computing a house payment with a business calculator
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Computing a house payment with a balloon payment at the end
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Computing the amount you can afford to borrow
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4. Doing Time Value of Money Computations with Excel
Mortgage amortization schedules
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Finding Excel financial functions
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Computing a car payment using Excel
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Computing a house payment using Excel
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Using Excel to construct a loan amortization schedule
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Computing an effective interest rate using Excel
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5. Savings and Retirement
Start saving early
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Growth in savings and the rule of 72
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Saving for a target amount for a house
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The importance of starting to save for retirement now
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Review and Conclusion
Time value of money dangers: A payday loan
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Where to go from here
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Glossary_TimeValueMoney_Financial_Decisions.zip
(102 KB)