Topic outline
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Having introduced these concepts in a more or less theoretical fashion, it is now important that you be introduced to the specific and practical techniques required to incorporate the time value of money into personal financial decisions.
In this case, these practical techniques relate to the calculation of present and future values. This will be done for both single sums and for series of cash flows, referred to as simple annuities.
Our preferred tool to undertake these calculations is Excel, which incorporates a wide range of financial functions, five of which will be required for the simple (in a mathematical sense) but not always easy (in a practical sense) calculations that you will be performing shortly.
Our choice of Excel is both practical and professional. While many of the financial calculations required can also be done using a financial calculator or with pen, paper and some intermediate level financial mathematics, most financial analysis is undertaken through the use of spreadsheet tools. Thus, using Excel, and gaining familiarity with it, is also an investment in your professional future and job readiness.
Presentation length: 25m 14s
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