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Courses » Time value of money-Concepts and Calculations

Time value of money-Concepts and Calculations

ABOUT THE COURSE

The time value of money is a basic concept in finance theory as  it affects financial decisions.  The concept is based on the fact that purchasing power of money varies with time. The  worth of a given amount of money at present time is more than the same amount in a near future due to its earning potential. In this module the student will learn how to use the concept of Time Value of Money which includes the compounding and discounting of a given money with time and interest rate, Different types of interest rates applied in money transactions, simple and compound interests, computation of annuities including loan payments, amortization, perpetuity, different cash flow patterns and its evaluation in terms of total payments made. Valuation of bonds and shares.

INTENDED AUDIENCE
Nil

PRE-REQUISITES
Knowledge of general mathematics and practice on MS Excel software are desirable.

INDUSTRY SUPPORT - LIST OF COMPANIES/INDUSTRY THAT WILL RECOGNIZE/VALUE THIS ONLINE COURSE
All manufacturing industry where financial decisions are taken.

813 students have enrolled already!!

COURSE INSTRUCTOR

Dr. Bikash Mohanty is a professor in Chemical engineering department at Indian institute of technology Roorkee. He has developed and taught the course “Chemical Engineering plant design and economics” for  more than a decade to chemical engineers. He has also developed a course on “Chemical Engineering Plant Design and Economics” for the project “National Mission Project on Education through ICT-developing pedagogical methods for various classes, intellectual calibres and research in e-learning” executed by IIT Kharagpur with the help of other IITs and IISc Bangalore.


MORE DETAILS ABOUT THE COURSE 

Course url: https://onlinecourses.nptel.ac.in/noc16_hs24
Course duration : 04 weeks
Start date and end date of course: 05 Sep 2016 - 30 Sep 2016
Dates of exams : 16 October 2016 & 23 October 2016
Time of exam : 2pm - 5pm
Final List of exam cities will be available in exam registration form.
Exam registration url - Will be announced shortly
Exam Fee: The online registration form has to be filled and the certification exam fee of approximately Rs 1000(non-Programming) needs to be paid.


CERTIFICATE

E-Certificate will be given to those who register and write the exam. Certificate will have your name, photograph and the score in the final exam. It will have the logos of NPTEL and IIT Roorkee.
It will be e-verifiable at nptel.ac.in/noc.
  COURSE LAYOUT

  Week 1: Introduction, Interest Rates, Simple Interest, Compounding techniques-1&2
  Week 2: Discrete annually compounding-1&2, Continuous compounding, Comparison of compounding methods, Present value 
  Week 3: Future value, Annuities-1&2, Perpetuity,  Amortization
  Week 4: Multiple cash flow-1&2, Valuation of bonds-1&2 and Valuation of shares


  SUGGESTED READING
  1. Max S. Peters, Klaus D. Timmerhaus and Ronald E. West, “Plant Design and Economics for Chemical Engineers”, Fifth Edition McGraw Hill
  2. M.Y.Khan and P.K.Jain, “Financial Management”, 4th Edition, Tata McGraw Hill