Chapter3TheTimeValueofMoney.pptVIP

Chapter 3: The Time Value of Money;What does it mean?;1.Interest;Why shall we know interest in studying FM?;2.Interest rate;3.Simple Interest;Future value;Example;example;Present Value;example;Example;Why shall we know the computation of future value and present value?;4.Compound Interest;Example;The Value of a Firm;5.Some Issues of Compound Interest;Example;Growth rate;Growth Rate;6.Annuities;6.1Ordinary annuity;Example;example;6.2Perpetuity;Annuity Due;Example;Example;7.Mixed flows;Example;Example;Example;8.Compounding more than once a year;Nominal interest rate;Example;9.Amortization a loan