Module+18000+I+Introduction+and+Learning+Objectives

I. Module 18000 Introduction and Learning Objectives rrw

**Introduction and Learning Objectives **

**Time Value of Money **

Money available today is worth more than the same amount at some point in the future because of the potential earning capacity of the money. The money you have today can be invested so that you will have more at a future point. The following video does a great job of explaining the **Time Value of Money**: []

The purpose of this module of the wiki is to introduce you to the concepts and mathematics associated with the Time Value of Money. Understanding this material can offer solutions to problems in personal finance, investments, banking and insurance. This module will introduce the formulas associated with **Present Value**, **Future Value**, **Interest Rate**, **Compounding of Interest** and **Discounting**.

The basic **Time Value of Money** problems will also be demonstrated using Microsoft Excel’s financial functions.

There are many useful websites and videos on the Additional Websites and Videos page.


 * Learning Objectives: **


 * 1) Define Time Value of Money
 * 2) Define Future Value
 * 3) Compute Future Value formula
 * 4) Define Present Value
 * 5) Compute Present Value formula
 * 6) Explore financial functions in Microsoft Excel