Time value of money

A dollar today beats a dollar next year. Compounding, discounting, present value of a stream, annuities and perpetuities: the math under every bond, loan and DCF.

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5. Present Value Prices and the Real Rate of Interest YaleCourses · 74 min

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Key idea

Prereqs: algebra and exponents. Next: Cost of capital & WACC. MIT 15.401 Sessions 2–3; Khan Academy 'Interest and debt'.

Next: 1. Compounding: future value

Time value of money

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5. Present Value Prices and the Real Rate of Interest