Course details
People often intuitively solve problems connected with the time value of money. For example, everyone knows that USD 1,000 they can get today is worth more than USD 1,000 that they will get in one year's time. In this course, we are going to take a more systematic look at the time value of money problems which will help YOU take smarter financial decisions in your everyday life.
Key definitions:
- the interest rate = the price of money,
- the future value of the investment = the amount that you will get in the future after investing in e.g. stocks, bonds, currencies etc.
- the present value of the bank credit = the today's amount of a liability that you owe to the bank.
Questions regarding money that we sometimes have to answer:
- Is it better to invest in this security or the other?
- How much money will I earn on this investment?
- Which banks is offering the best credit conditions?
- How much money should I save systematically to be able to go on holiday?
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