Introduction to Time Value of Money (TVM)

Go to Course: https://www.coursera.org/learn/time-value-of-money

Introduction

**Course Review and Recommendation: Introduction to Time Value of Money (TVM) on Coursera** The "Introduction to Time Value of Money (TVM)" course offered on Coursera is an essential foundation for anyone looking to delve into the world of finance. Understanding the time value of money is pivotal, as it underpins virtually every financial decision we encounter in personal and professional contexts. This course is tailored for those who are new to the topic or looking to refresh their knowledge, making it a valuable asset for students, professionals, and finance enthusiasts alike. ### Course Overview The strength of this course lies in its structured approach to explaining complex financial concepts in a straightforward manner. The curriculum is designed effectively, spanning four weeks, each building on the previous material while providing relatable examples and practical applications. ### Syllabus Breakdown - **Week 1: Time Value of Money - Simple Concepts & Applications** The course kicks off with the foundational concepts of TVM. The instructors emphasize learning through simple applications, notably focusing on Future Value (FV). The use of relatable examples helps demystify the concept, making it easier for learners to grasp. The encouragement to pause and practice each problem is particularly beneficial for reinforcing understanding. - **Week 2: Time Value of Money - Simple Concepts & Applications (cont.)** Building on the previous week, this segment shifts to Present Value (PV), essential for financial decision-making. The emphasis on practical, everyday situations ensures that students can connect theoretical knowledge to real-world applications. A graded assignment provides a chance for self-assessment, ensuring learners keep pace with the material. - **Week 3: Time Value of Money - Annuities** This week introduces annuities, expanding the complexity of the material covered. By mastering this concept, students will gain invaluable insights into various financial products, such as loans and investments that are common in personal and corporate finance. - **Week 4: Time Value of Money - Complex Applications** In the final week, the course culminates in complex applications that delve deeper into borrowing and lending processes. This week is particularly engaging, as you not only consolidate your understanding but also learn to leverage Excel for financial analysis. The practical assignment challenges learners to demonstrate proficiency, ensuring that students can apply what they've learned effectively. ### Why You Should Enroll 1. **Structured Learning**: The course unfolds in a structured manner, making it easy to follow along and understand the progression of concepts. 2. **Real-World Applications**: With a clear focus on practical applications, learners can expect to apply their knowledge in real-world scenarios, enhancing their financial decision-making skills. 3. **Interactive Learning**: The course encourages active participation through problem-solving and graded assignments, thereby reinforcing the learning process. 4. **Valuable Skills**: Mastery of TVM concepts and Excel enhances your financial analytical skills, which are highly sought after in both academic and professional settings. 5. **Accessibility**: Offered on Coursera, the course is accessible from anywhere, allowing for flexible learning at your own pace. ### Conclusion The "Introduction to Time Value of Money (TVM)" course is a must for anyone aiming to understand the crucial financial principle that money has a time-dependent value. Whether you are a business student, a finance professional, or someone interested in personal finance, this course provides invaluable insights and practical skills that can easily be applied. I highly recommend enrolling in this course to build a solid financial foundation and enhance your decision-making capabilities. Take the first step towards mastering your financial future today!

Syllabus

Week 1: Time Value of Money - Simple Concepts & Applications

This week, we introduce the framework of time value of money (TVM) in a carefully structured way, with a focus on Future Value using relatively simple applications. As mentioned in the Syllabus, all concepts are introduced using examples and you are strongly encouraged to pause the videos and do every problem.

During this second week, we build on Week 1 and move to the much more often used concept of Present Value. We again use simple examples, focusing on situations we confront on a daily basis. All concepts are introduced using examples that you need to do yourself to stay on top of the concepts. The second week also provides you an opportunity to test your knowledge up to this point with a required submission of the first graded assignment.

During this week, we will progress to more complex concepts and applications of finance.

This week ends the course with relatively complex applications of finance. We spend a lot of time on understanding how borrowing and lending really works. You will also get an opportunity to test your understanding of the basic principles of time value of money by submitting the second assignment for the course. You will also learn how top use Excel and show your competence in doing so.