Overview with Objectives:
Suppose you have the option of receiving $100 dollars today vs. $200 in five years. Which option would you
choose? How would you determine which is the better deal? Some of us would rather have less money today vs. wait for more money tomorrow. However, sometimes it pays to wait. Unit 2 introduces the concept of the time value of money and explains how to determine the value of money today vs. tomorrow by using finance tools to determine present and future values. Also, Unit 2 exposes the concept of interest rates and how to apply them when multiple periods are considered.
learning outcome:
- Future value & present value of single cash flow,
- Future value & present value of Multiple cash flow,
