Introduction to Finance

Discover the fundamentals of finance with a comprehensive exploration of time value of money and discounting. This tutorial begins by explaining why future cash flows are less valuable than present ones, illustrating this with an extreme example. It then delves into compound interest calculations using a numerical example of saving £10,000 at a 10% annual rate over five years. The video further demonstrates how to calculate the present value of future incomes and extends this to finding the present value of a stream of cash flows with varying discount rates. Subscribe to @AxiomTutoring for more insightful finance tutorials.

Learn the fundamentals of finance with a comprehensive guide on the 'Time Value of Money' and 'Discounting'. Discover why future cash flows are discounted in present terms, illustrated through practical examples. Master compound interest calculations and determine present values using varying discount rates. Calculate the present value of multiple cash flows with different rates. Subscribe to @AxiomTutoring for more financial insights.

Learn to simplify complex financial calculations in this video. Discover how to streamline geometric series summation to determine present value efficiently, even with multiple fixed cash flows and discount rates over extended periods.

In this tutorial, we explore perpetual payments: constant cash flows with an infinite horizon. We derive the perpetuity formula using the limit of the annuity formula as time approaches infinity, yielding C/R. Key application conditions and relation to annuities are discussed. Subscribe to @AxiomTutoring for more comprehensive finance lessons.