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Interest rate and discount rate, Time Value of Money, CFA Level 1 Tutorial-1

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Interest rate and discount rate, Time Value of Money, CFA Level 1 Tutorial-1 The time value of money is the principle that a certain currency amount of money today has a different buying power (value) than the same currency amount of money in the future. The value of money at a future point of time would take account of interest earned or inflation accrued over a given period of time. This notion exists both because there is an opportunity to earn interest on the money and because inflation will drive prices up, thus changing the "value" of the money. The time value of money is the central concept in finance theory. However, the explanation of the concept typically looks at the impact of interest and assumes, for simplicity, that inflation is neutral. http://www.garguniversity.com Check out Ebook "Mind Math" from Dr. Garg https://www.amazon.com/MIND-MATH-Learn-Math-Fun-ebook/dp/B017QEIF18
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Text Comments (4)
Important Points (1 year ago)
why do we put 1+ ? where does 1+ come from?
TheEndahouzerecords (4 months ago)
1+ respresents a rate calculation
Ish Amb (2 years ago)
what are you typing? it's not visible
Syed Ali (1 year ago)
Ish Amb may b this lecture for ghost students

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