To be able to understand and apply one of the two main building blocks of finance - Time Value of Money (TVM)
To evaluate alternatives
To make decisions
This course is an introduction to time value of money (TVM) and decision-making to help you understand the basics of finance. This course is part of a specialization titled “Foundational Finance for Strategic Decision-Making” and is helpful if you are interested in applying to an MBA degree program or learning the foundations of finance to be more effective in your career.
This course is applied and problem-based with assignments that are intentionally introductory and simpler than real-world applications you will confront when making day-to-day financial decisions and in more advanced courses.
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.
Week 2: Time Value of Money - Simple Concepts & Applications (cont.)
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.
Week 3: Time Value of Money - Annuities
During this week, we will progress to more complex concepts and applications of finance.
Week 4: Time Value of Money - Complex Applications
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.