10.1: Chapter Ten- Learning Outcomes
Learning Outcomes
In this chapter, you will:
- Calculate Simple Future- and Present-Values both mathematically and with a simple calculator, and by using an Interests Rates Tables.
- Apply the Three Commandments of the Time Value of Money (TVM).
- Differentiate between simple interest and interest-on-interest.
- Consider the curvilinear nature of compound interest and TVM.
- Compare the relative volatilities of short-term versus long-term cash flows.
Note: Review questions for Chapters Ten and Eleven will appear at the end of Chapter Eleven.