Introduction to Time Value of Money (TVM)

Introduction to Time Value of Money (TVM)

This course is part of Foundational Finance for Strategic Decision Making Specialization

Instructor: Gautam Kaul

38,796 already enrolled

Included with

Learn more

4 modules

Gain insight into a topic and learn the fundamentals.

965 reviews

Beginner level

Recommended experience

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

96%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

965 reviews

Beginner level

Recommended experience

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

96%

Most learners liked this course

What you'll learn

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

Skills you'll gain

Tools you'll learn

Microsoft Excel

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

4 assignments

Taught in English

See how employees at top companies are mastering in-demand skills

Learn more about Coursera for Business

logos of Petrobras, TATA, Danone, Capgemini, P&G and L'Oreal

Build your subject-matter expertise

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

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 4 modules in this course

The strength of finance is that it takes a structured approach to decision making, with one key building block underlying all decisions — understanding the value of time, or the Time Value of Money (TVM). In this course, we will develop this building block using introductory, and simple, applications. We will learn about the Time Value of Money (TVM), Simple Future Value (FV) , Simple Present Value (PV) , Future Value of Annuity, Loans, compounding, and Valuing Perpetuities. We will introduce the framework in a carefully structured and replicable way to prepare you to explore more advanced applications in the rest of the specialization. In the follow-on courses, we will expand the applications to more complex real-world decisions.

After completing this course, you will have an understanding of how the value of money changes over time. You will understand the implications of all your financial decisions, including saving for the future through different channels and borrowing for future needs. You will leave with the practical knowledge needed to make informed decisions on a wide range of financial decisions. This course is part of the four-course Foundational Finance for Strategic Decision Making Specialization.

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.

What's included

6 videos4 readings

6 videos Total 64 minutes

About This Specialization 1 minute
1.1 Time Value of Money 12 minutes
1.2 Simple Future Value (FV) 15 minutes
1.3 Simple FV... 10 minutes
1.4 Simple FV: Example 20 minutes
1.5 Simple FV: Example 2 6 minutes

4 readings Total 105 minutes

Specialization Syllabus 45 minutes
Course 1 Syllabus 20 minutes
Note-Formulae 30 minutes
Pre-Course Survey 10 minutes

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.

What's included

2 videos1 reading2 assignments

During this week, we will progress to more complex concepts and applications of finance.

What's included

5 videos1 reading

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.

What's included

4 videos2 readings2 assignments

Earn a career certificate

Add this credential to your LinkedIn profile, resume, or CV. Share it on social media and in your performance review.

Instructor

Instructor ratings

(203 ratings)

Gautam Kaul

University of Michigan

24 Courses 133,700 learners

Offered by

University of Michigan

Explore more from Finance

University of Michigan
Advanced Concepts in Time Value of Money (TVM)
Course
University of Michigan
Stocks and Bonds
Course
University of Michigan
Foundational Finance for Strategic Decision Making
Specialization
University of Colorado Boulder
Product Cost and Investment Cash Flow Analysis
Course

Why people choose Coursera for their career

Felipe M.

Learner since 2018

"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."

Jennifer J.

Learner since 2020

"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."

Larry W.

Learner since 2021

"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."

Chaitanya A.

"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Learner reviews

5 stars
85.28%
4 stars
12.64%
3 stars
1.76%
2 stars
0%
1 star
0.31%

Showing 3 of 965

Reviewed on May 13, 2020

Very nice introduction course. It motivates you to gon on to more complex things with a simple but solid foundation. The professor is the most engaging I've had in Coursera.

Reviewed on Aug 5, 2020

Professor Kaul does a great job of explaining the basic concepts and doesn't make the class overly difficult. This class was very enjoyable, I definitely learned alot.

Reviewed on Apr 2, 2021

Professor Kaul showed passion for the course material. Lessons are to the point and informational. I would recommend to anyone introducing themselves to the subject of finance or economics.

View more reviews

Open new doors with Coursera Plus

Unlimited access to 10,000+ world-class courses, hands-on projects, and job-ready certificate programs - all included in your subscription

Learn more

Advance your career with an online degree

Earn a degree from world-class universities - 100% online

Explore degrees

Join over 3,400 global companies that choose Coursera for Business

Upskill your employees to excel in the digital economy

Learn more

Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.