Introduction to Time Value of Money (TVM)

  • 4.8
Approx. 13 hours to complete

Course Summary

This course teaches the fundamental principles of time value of money, discounting cash flows, and capital budgeting. The concepts and techniques learned will help students make better financial decisions both personally and professionally.

Key Learning Points

  • Understand the time value of money and its applications in finance
  • Learn how to calculate present and future values of cash flows
  • Master the concepts of net present value and internal rate of return
  • Apply capital budgeting techniques to evaluate investment opportunities

Related Topics for further study


Learning Outcomes

  • Understand the basic principles of time value of money and its applications in finance
  • Calculate present and future values of cash flows
  • Apply capital budgeting techniques to evaluate investment opportunities

Prerequisites or good to have knowledge before taking this course

  • Basic knowledge of arithmetic and algebra
  • Familiarity with spreadsheet software like Microsoft Excel

Course Difficulty Level

Intermediate

Course Format

  • Online self-paced
  • Video lectures
  • Quizzes and assignments
  • Peer-reviewed assignments

Similar Courses

  • Financial Markets
  • Corporate Finance Essentials
  • Investment Management

Related Education Paths


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Description

The strength of finance is that it takes a structured approach to decision making, with one key building block underlying all decisions — understanding the value of time, or the Time Value of Money (TVM). In this course, we will develop this building block using introductory, and simple, applications. We will learn about the Time Value of Money (TVM), Simple Future Value (FV) , Simple Present Value (PV) , Future Value of Annuity, Loans, compounding, and Valuing Perpetuities. We will introduce the framework in a carefully structured and replicable way to prepare you to explore more advanced applications in the rest of the specialization. In the follow-on courses, we will expand the applications to more complex real-world decisions.

Outline

  • Week 1: Time Value of Money - Simple Concepts & Applications
  • About This Specialization
  • 1.1 Time Value of Money
  • 1.2 Simple Future Value (FV)
  • 1.3 Simple FV...
  • 1.4 Simple FV: Example
  • 1.5 Simple FV: Example 2
  • Specialization Syllabus
  • Course 1 - Syllabus
  • Note-Formulae
  • Pre-Course Survey
  • Week 2: Time Value of Money - Simple Concepts & Applications (cont.)
  • 2.1 Simple Present Value (PV)
  • 2.2 Recap of TVM
  • Note-Spreadsheets
  • Practice Assignment 1
  • Assignment 1
  • Week 3: Time Value of Money - Annuities
  • 3.1 FV of Annuity: Concept
  • 3.2 FV of Annuity: Example 1
  • 3.3 FV of Annuity: Example 2
  • 3.4 PV of Annuity: Concept
  • 3.5 PV of Annuity: Examples
  • Note-Formulae
  • Week 4: Time Value of Money - Complex Applications
  • 4.1 A Loan: The Power of Finance
  • 4.2 Compounding
  • 4.3 Valuing Perpetuities
  • 4.4 Mega Example: Putting it All Together!
  • Note-Spreadsheets
  • Post-Course Survey
  • Practice Assignment 2
  • Assignment 2

Summary of User Reviews

Read reviews for the Time Value of Money course on Coursera. Users found the course informative and applicable to their lives. Many appreciated the interactive exercises and real-life examples provided throughout the course.

Key Aspect Users Liked About This Course

Interactive exercises and real-life examples.

Pros from User Reviews

  • Informative and practical course content.
  • The concepts taught in the course are applicable to everyday life.
  • The interactive exercises help reinforce learning.
  • Real-life examples provided throughout the course help make the concepts more relatable.

Cons from User Reviews

  • Some users found the course to be too basic.
  • The course can be challenging for those without a strong math background.
  • Some users found the course to be too theoretical and wished for more practical applications.
  • The course can be time-consuming for those with busy schedules.
English
Available now
Approx. 13 hours to complete
Gautam Kaul
University of Michigan
Coursera

Instructor

Gautam Kaul

  • 4.8 Raiting
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