1 Time Value of Money Part 1
About this lesson
Discover the fundamentals of finance with a comprehensive exploration of time value of money and discounting. This tutorial begins by explaining why future cash flows are less valuable than present ones, illustrating this with an extreme example. It then delves into compound interest calculations using a numerical example of saving £10,000 at a 10% annual rate over five years. The video further demonstrates how to calculate the present value of future incomes and extends this to finding the present value of a stream of cash flows with varying discount rates. Subscribe to @AxiomTutoringCourses for more insightful finance tutorials.
Walkthrough
Follow the reasoning, step by step.
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