This course covers the 'time value of money', a concept at the heart of economics, finance, and business decision making that also is frequently used by accountants when valuing assets and liabilities. The course consists of a single video that covers interest, future value and present value of various cash flows, and internal rates of return. The applications covered include creating savings plans for future goals, such as vacations and college educations, as well as valuing and accounting for bond investments.

Learning Objectives
  • Define the concept of time value of money.
  • Explain how to compute the future value of a variety of cash flows.
  • Explain how to compute the present value of a variety of cash flows.
  • Explain how to compute the internal rate of return of a variety of cash flows.
  • Demonstrate how the concept of time value of money is applied to various savings plans and the valuation of assets and liabilities on the balance sheet.
Last updated/reviewed: August 15, 2023
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Included In Certifications

This course is included in the following Certification Programs:

9 CoursesFinancial Reporting and Analysis Certification

  1. Introduction to the Financial Statements and the Environment of Financial Reporting
  2. Preparing Financial Statements
  3. Reading and Analyzing Financial Statements
  4. Time Value of Money - Concepts and Applications
  5. Classification, Debt and Equity
  6. Current Assets and Asset Valuation
  7. Equity Investments and Long-lived Assets
  8. Earnings Management
  9. Ethics and Earnings Management
5 Reviews (10 ratings)

Reviews

4
Anonymous Author
This course was a great refresher on the time value of money concepts. The instructor provides alot of examples of calculating the old-fashioned way. I do wish he had gone over the use of Excel in solving some of these problems.
5
Anonymous Author
Great review of fundamental concepts around time value for money. Great instructor that really broke down the information in easily understandable ways.
4
Anonymous Author
a great refresher for time value of money concepts. I liked all of the example problems and thought they really helped to clarify the concepts.
5
Anonymous Author
This is an important topic and the instructor did a great job presenting the lesson.
4
Anonymous Author
The topics and presentation were very good. The test questions were poorly worded.
Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Time Value of Money - Concepts and Applications1:10
  Time Value of Money - Future Value16:34
  Time Value of Money - Present Value10:46
  Exercises for Concepts and Its Applications11:34
  Internal Rate of Return Calculations11:44
  Bonds12:32
  Accounting for Bond Investments9:57
CONTINUOUS PLAY
  Time Value of Money - Concepts and Applications1:14:17
SUPPORTING MATERIAL
  Slides: Time Value of Money - Concepts and ApplicationsPDF
  Time Value of Money - Concepts and Applications Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam