1. Time Value of Money

2. Why do we need TVM? $ now does not equal $ later Why? – Inflation – Purchasing power

3. Key Variables in TVM PV FV I PMT N

4. Basic Examples What is the basic formula for PV? Example #1 Example #2

5. Annuities What is an annuity? How do we solve for an annuity?

6. Uneven Cash Flow Stream How do you find the PV of a stream of cash flows that are not equal (i.e. each CF is different)?

7. Amortization Building an amortization table is a four step process – Step 1 – Step 2 – Step 3 – Step 4 Repeat steps 2-4 for each row on the table

8. Things to Remember Interest rates are always assumed to be quoted…? Signs in the calculator Time frequency of I, PMT, N

9. Additional Topics ?