Time Value of Money
Chapter 4 notes and PLNs:
Partial Lecuture Notes: Examples left blank
Partial Lecuture Notes: Examples and text left blank
Complete Notes
Chapter 5 notes and PLNs:
Partial Lecuture Notes: Examples left blank
Partial Lecuture Notes: Examples and text left blank
Complete Notes
Quizzes and Keys:
Summer 2015; Summer 2014; Fall 2013; Summer 2013; Spring 2013; Fall 2012; Summer 2012; Spring 2012
Questions from older exams:
Problems;
Key Last Update: 9/7/2011
Chapters 4 and 5 in Corporate Finance by Berk and DeMarzo
Problems from text:
Chapter 4: 9, 14, 16, 18, 23, 25, 29, 32, 34, 35, 36, 45, 46
Chapter 5: 1, 7, 10, 12, 14, 18, 19, 23, 25, 30, 31, 35
Check Figures
Ivo Welch's online Book:
Chapter 2: Present Value;
Chapter 3: Stock and Bond Valuation: Annuities and Perpetuities
Wikipedia pages:
Time Value of Money: Note: Good links to related time-value pages.
Annual Percentage Rate
Annual Percentage Yield
Real and Nominal Interest Rates
Term Structure of Interest Rates
Kahn Academy: (Note: many of the following videos are very basic)
Introduction to simple and compound interest
Mathematics of simple and compound interest
An introduction to present values
Comparing present and future values of multiple cash flows
How changes in interest rates affect present values
Present values when rates vary by maturity
The impact of compound interest
The impact of compound interest - continued
Continuous compounding with exponential function
Continuous compounding over multiple periods
The difference between APRs and effective interest rates
The term stucture of interest rates
Real and nominal returns, part 1
Real and nominal returns, part 2
Real and nominal returns, part 3
Chapters 6 and 9 in Corporate Finance by Berk and DeMarzo
Note: these chapters provide an excellent application of the time value of money and provide a fairly in-depth coverage of stock and bond valuation.