Advanced Concepts in Time Value of Money (TVM) from Coursera

This course builds upon the fundamental concept of Time Value of Money (TVM) using more advanced applications and questions. You will apply the TVM concept in real-life problems of financial planning and saving for college. You will also learn more about loans and apply TVM concepts to borrowing and lending. You will realize that — while the applications are seemingly more complex, but when seen and broken-up into bite-size components — the framework, principles, and tools remain the same.

After completing this course you will have an understanding of the detailed mechanics and reasoning behind any decision you make that has consequences for the future. The deeper exposure to financial transactions you will be applicable in any/all decisions. The great news is that these concepts and skills will transfer to your professional/business decisions.

This course is part of the four-course Foundational Finance for Strategic Decision Making Specialization.

What's inside

Syllabus

Week 1: Mega Application I - Saving for College

This week we will start this course with the first Mega Application that will expose us to more real-world situations confronted by us all. You are strongly encouraged to think through an application and draw timelines to realize that complex applications are a collection of the simpler ones we dealt with Course 1. As you work through the four Mega Applications in this course, look to find the common themes. In this application, we will start with a classic example of saving for a future need - to attend college.

Week 2: Mega Application II - Financial Planning

This week's second Mega Example is about financial planning, agin something that can serve very useful because we typically work for some time and then want to maintain a standard of living. The key concepts here are again the same as those developed in the first course, but the issue is one of breaking down more difficult problems into bite-size pieces that resemble the simpler applications and assignments in Course 1. You are strongly encouraged to start attempting the Practice and Graded assignments - each has TEN questions with deliberate overlap with Course 1 and then some challenging scenarios in the later part of the assignments.

Week 3: Mega Application III - A Loan

This week's Mega Application is my favorite because it shows you both the power of finance and its ability to simplify seemingly complex transactions. We all borrow and lend, though at different points in time, and even at the same time. This application is very detailed because it is meant to demonstrate the intuitive power of finance that makes calculations easy.

Week 4: Mega Application IV - Making Complex Simple

This is a Mega Application that will help you understand the power of simplicity in conducting financial examples. You are again encouraged to keep practicing and attempting the assignments.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Applies the Time Value of Money to real-world financial scenarios, enhancing its relevance and comprehension for learners

Emphasizes the practical applications of financial concepts, making it suitable for professionals and business leaders

Suitable for learners with a background in the Time Value of Money concept and financial principles

Helps learners develop a deeper understanding of lending and borrowing, empowering them with essential financial knowledge

Explores financial planning and saving for future needs, equipping learners with practical skills for personal finance management

Taught by Gautam Kaul, an experienced instructor in financial concepts, ensuring quality instruction and subject matter expertise

Reviews summary

Informative tvm fundamentals

Learners say that Advanced Concepts in Time Value of Money (TVM) offers a well-structured curriculum that imparts a deep understanding of the subject's fundamental concepts. According to students, the course's engaging lectures and real-life applications make it a valuable resource for anyone looking to enhance their knowledge of TVM. However, some learners suggest that the course could benefit from Spanish subtitles and hints for practice questions.

Instructor is engaging and presents material well

"This teacher is very relaxed and easy to listen to."

"He presents the material well and has good practice problems."

Some concepts may be difficult to grasp

"did not understand 100% of annuity"

No hints for practice questions and poor forum response

"No any hints for some of the practice questions."

"and the forum response is bad."

Lack of Spanish subtitles for videos

"se me dificulto porque no esta la opccion de subtitulos en español de los videos del profesor."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Advanced Concepts in Time Value of Money (TVM) with these activities:

Volunteer at a financial literacy organization

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Share your knowledge of time value of money and financial planning by volunteering at an organization that provides financial literacy education to underserved communities.

Browse courses on Time Value of Money

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Find financial literacy organizations in your area.
Contact the organizations and inquire about volunteer opportunities.
Attend volunteer training to learn about the organization's mission and programs.
Volunteer your time to teach financial literacy workshops or provide one-on-one counseling.

Calculate the cost of a college education

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Apply time value of money concepts to a real-life scenario by calculating the future cost of a college education and developing a savings plan to meet that goal.

Browse courses on Time Value of Money

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Research the current cost of tuition, fees, and living expenses for your desired college.
Estimate the future cost of college based on inflation rates.
Calculate the present value of the future cost of college using time value of money formulas.
Develop a savings plan to reach your financial goal.

Review formulas for time value of money

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Reinforce your understanding of the fundamental concepts of time value of money to prepare for more advanced applications and questions.

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Go over the basic formulas for present value, future value, and annuities.
Solve practice problems using these formulas.

Four other activities

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Calculate time value of money using online calculators

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Gain proficiency in using online calculators to solve time value of money problems.

Browse courses on Time Value of Money

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Find reputable online time value of money calculators.
Input various scenarios and calculate present value, future value, and annuities.

Watch tutorials on advanced time value of money applications

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Expand your knowledge of time value of money by watching tutorials on real-life applications, such as financial planning and loans.

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Search for tutorials on specific applications of time value of money.
Watch the tutorials and take notes on key concepts.
Apply the concepts to practice problems.

Develop a financial plan using time value of money concepts

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Apply your time value of money knowledge to create a comprehensive financial plan for a specific goal, such as retirement or purchasing a home.

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Determine your financial goals and objectives.
Gather your financial data and assumptions.
Use time value of money formulas to calculate future values and present values.
Create a detailed financial plan outlining your investment strategy and risk management.

Participate in a financial planning competition

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Test your financial planning skills and knowledge by participating in a competition that challenges you to solve real-world financial problems.

Browse courses on Time Value of Money

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Find financial planning competitions that are relevant to your interests.
Form a team or work individually on a financial planning case study.
Use time value of money concepts to analyze the case study and develop a financial plan.
Submit your financial plan to the competition.
Receive feedback on your plan and learn from the winning submissions.

Career center

Learners who complete Advanced Concepts in Time Value of Money (TVM) will develop knowledge and skills that may be useful to these careers:

Loan Officer

Loan Officers assess and approve loan applications, ensuring compliance with lending regulations. This course may be useful for aspiring Loan Officers, as it provides a strong foundation in TVM and its applications in loan analysis. The course also covers the concepts of loans and borrowing, which are essential for evaluating and approving loan applications.

See salaries and explore the career path for Loan Officer

Mortgage Broker

Mortgage Brokers help individuals and families obtain financing for homes and other real estate. This course may be useful for aspiring Mortgage Brokers, as it provides a strong foundation in TVM and its applications in mortgage analysis. The course also covers the concepts of loans and borrowing, which are essential for evaluating and approving mortgage applications.

See salaries and explore the career path for Mortgage Broker

Personal Financial Advisor

Personal Financial Advisors provide individualized financial advice and guidance to individuals and families. This course may be useful for aspiring Personal Financial Advisors, as it provides a strong foundation in TVM and its applications in financial planning. The course also covers the concepts of saving for college and retirement, which are key areas of focus for Personal Financial Advisors.

See salaries and explore the career path for Personal Financial Advisor

Financial Data Scientist

Financial Data Scientists use data science techniques to analyze financial data and make investment decisions. This course may be useful for aspiring Financial Data Scientists, as it provides a strong foundation in financial analysis and TVM. The course also covers the concepts of loans and borrowing, which are relevant to financial data science and investment decisions.

See salaries and explore the career path for Financial Data Scientist

Quantitative Analyst

Quantitative Analysts use mathematical and statistical models to analyze financial data and make investment decisions. This course may be useful for aspiring Quantitative Analysts, as it provides a strong foundation in financial analysis and TVM. The course also covers the concepts of loans and borrowing, which are relevant to quantitative analysis and investment decisions.

See salaries and explore the career path for Quantitative Analyst

Financial Consultant

Financial Consultants provide financial advice and guidance to individuals and businesses. This course may be useful for aspiring Financial Consultants, as it provides a strong foundation in financial analysis and TVM. The course also covers the concepts of loans and borrowing, which are relevant to financial consulting and advisory services.

See salaries and explore the career path for Financial Consultant

Financial Planner

Financial Planners help individuals and families develop and manage their finances. This course may be useful for aspiring Financial Planners, as it provides a strong foundation in TVM and its applications in financial planning. The course also covers the concepts of saving for college and retirement, which are key areas of focus for Financial Planners.

See salaries and explore the career path for Financial Planner

Investment Analyst

Investment Analysts evaluate and recommend investments for individuals and institutions. This course may be useful for aspiring Investment Analysts, as it provides a strong foundation in TVM and its applications in financial planning and investment analysis. The course also covers the concepts of loans and borrowing, which are relevant to investment decisions.

See salaries and explore the career path for Investment Analyst

Risk Analyst

Risk Analysts assess and manage financial risks for individuals and institutions. This course may be useful for aspiring Risk Analysts, as it provides a strong foundation in TVM and its applications in financial analysis. The course also covers the concepts of loans and borrowing, which are relevant to risk assessment and management.

See salaries and explore the career path for Risk Analyst

Portfolio Manager

Portfolio Managers oversee and manage investment portfolios for individuals and institutions. This course may be useful for aspiring Portfolio Managers, as it provides a strong foundation in TVM and its applications in investment analysis. The course also covers the concepts of loans and borrowing, which are relevant to investment decisions.

See salaries and explore the career path for Portfolio Manager

Venture Capitalist

Venture Capitalists invest in early-stage companies with high growth potential. This course may be useful for aspiring Venture Capitalists, as it provides a strong foundation in financial analysis and TVM. The course also covers the concepts of loans and borrowing, which are relevant to venture capital investment decisions.

See salaries and explore the career path for Venture Capitalist

Financial Manager

Financial Managers oversee the financial aspects of an organization, including budgeting, cash flow, and investment management. This course may be useful for aspiring Financial Managers, as it provides a strong foundation in TVM and its applications in financial planning and investment analysis. The course also covers the concepts of loans and borrowing, which are relevant to financial management and investment decisions.

See salaries and explore the career path for Financial Manager

Financial Software Engineer

Financial Software Engineers develop and maintain software applications for financial institutions and companies. This course may be useful for aspiring Financial Software Engineers, as it provides a strong foundation in financial analysis and TVM. The course also covers the concepts of loans and borrowing, which are relevant to financial software development.

See salaries and explore the career path for Financial Software Engineer

Securities Trader

Securities Traders buy and sell stocks, bonds, and other financial instruments for individuals and institutions. This course may be useful for aspiring Securities Traders, as it provides a strong foundation in TVM and its applications in investment analysis. The course also covers the concepts of loans and borrowing, which are relevant to trading and investment decisions.

See salaries and explore the career path for Securities Trader

Financial Analyst

Financial Analysts apply their knowledge of economics and finance to analyze market trends and make recommendations for investment. This course may be useful for aspiring Financial Analysts, as it provides a strong foundation in TVM, a fundamental concept in finance. The course also covers real-life applications of TVM in financial planning, college savings, and loan analysis. These concepts are essential for Financial Analysts who need to analyze and make decisions on financial transactions.

See salaries and explore the career path for Financial Analyst