By Pamela Peterson Drake

Entire insurance of the time price of moneyIn this ebook, authors Pamela Peterson Drake and Frank Fabozzi totally extend upon the kind of time price of cash (TVM) innovations often awarded as a part of overviews given in different normal finance books. a number of TVM strategies and theories are mentioned, with the authors delivering many examples all through each one bankruptcy that serve to enhance the instruments and strategies coated. difficulties and certain solutions-demonstrated utilizing diversified monetary calculators, in addition to Excel-are additionally supplied on the finish of every bankruptcy, whereas thesaurus phrases are supplied in an appendix to familiarize you with uncomplicated terms.Provides the fundamental foundations of the time worth of moneyCovers matters starting from an advent of monetary arithmetic to calculating present/future values and knowing personal loan amortizationContains problem/solution units all through, so that you can attempt your wisdom of the themes discussedUnderstanding the time worth of cash is key, and this trustworthy source can assist you achieve a company snatch of its many elements and its real-world purposes.

Show description

Read Online or Download Foundations and Applications of the Time Value of Money PDF

Best investments & securities books

New Era Value Investing: A Disciplined Approach to Buying Value and Growth Stocks

A special advisor that mixes the simplest of conventional worth concept with an cutting edge method of assessing price in low or non-dividend paying stocksIn the Nineties, America's specialize in productiveness and innovation resulted in large profits in know-how, communique, and healthcare shares, and contributed to the transformation of the U.

Wiley Study Guide for 2015 Level I CFA Exam: Complete Set

The Wiley learn courses for the extent 1 CFA examination are confirmed to assist applicants comprehend, continue, and grasp the CFA application Curriculum, whole with color-coded examine publications and insurance of each studying final result assertion at the examination. With over 1,000 pages of distilled wisdom from our employees of CFA charterholders and teachers, those books are a powerful and confirmed examine reduction jam-packed with examination assistance, primary innovations, and in-depth examples.

The Principles of Alternative Investments Management: A Study of the Global Market

The aim of this booklet is to provide the foundations of different investments in administration. the person chapters offer a close research of varied sessions of other investments at the monetary marketplace. regardless of many alternative definitions of different investments, it may be assumed classical method of replacement investments comprises hedge money, fund of cash (FOF), controlled bills, dependent items and personal equity/venture capital.

Quantitative Equity Portfolio Management: Modern Techniques and Applications

Quantitative fairness portfolio administration combines theories and complex thoughts from numerous disciplines, together with monetary economics, accounting, arithmetic, and operational study. whereas many texts are dedicated to those disciplines, few care for quantitative fairness making an investment in a scientific and mathematical framework that's appropriate for quantitative funding scholars.

Additional resources for Foundations and Applications of the Time Value of Money

Sample text

If the discount rate involves compounding of interest more than once within an annual period, the present value must reflect this compounding. 1. Discounting Inputs: i = 7%, n = 10; FV = 500,000. 2. Discounting and the Frequency of Compounding The continuous compounding arrangement has the smallest present value: a. 46 P1: a/b c02 P2: c/d QC: e/f JWBT130-Drake T1: g July 3, 2009 18:56 Printer: Yet to come 39 Don’t Discount Discounting b. 86 c. 20 d. 3. 4. 5. Are We There Yet? 1. 2. 5 million saved by the time you reach age 30, and suppose that you are 20 years old today.

22. 7 How long does it take to double your money if the interest rate is 5% per year, compounded annually? Answer: 15 years. 8 How long does it take to triple your money if the interest rate is 5% per year, compounded annually? Answer: 23 years. 9 How long does it take to double your money if the interest rate is 12% per year, compounded quarterly? Answer: 6 years. 5: ARE WE THERE YET? Suppose you deposit $1,000 in an account paying 9% APR interest, with monthly compounding. How long will it take this deposit to grow, with interest, to reach $10,000?

3 Discounting $10,000 for Five Years for Different Annual Percentage Rates and Different Frequencies of Compounding where APR is the annual percentage rate, n is the number of years, and e is the base of the natural logarithm. For example, what is the present value of $10,000 due at the end of five years if the interest rate is 6%, compounded continuously? 3, in which we expand this last example to include quarterly and continuous compounding. For a given annual percentage rate, the greater the frequency of compounding, the greater is the effective interest rate and the smaller is the present value.

Download PDF sample

Rated 4.20 of 5 – based on 10 votes