A1
Time Value of Money
The building block of all pricing: what money at one date is worth at another.
Learning focus: compounding frequency, the difference between nominal and effective rates, and why IRR can have more than one answer.
Inputs
%
Present value
1,000.00
Future value
1,791.71
Annual rate
6.0000%
Years
10.0082
Growth factor
1.791706
Interest earned
791.71
Value over time