Sunday, July 27, 2008

Time Value of Money: 10 Calculations to Know

Howdy! If first couple of lectures for various subjects are anything to go by, I think we are going to have a great learning experience in this semester. It's an impressive set of subjects that we have in curriculum.



  • International Micro and Macro Economics

  • Corporate Finance

  • Operations Management

  • Strategic Marketing Management

  • Brand Management

  • Business Sustainability

I was amazed to see the level of class participation in Corporate Finance lecture this Saturday. A pof the reason behind it was the topic of discussion - Time Value of Money. Dr. Vrinda Kamat related it to Personal Financing decisions so very well. On the very same topic, I came across a good resource on Net.


Outlook Money recently published a very good piece on "10 Calculation To Know" for money management. It explains following concepts very briefly, but in such a simple language.



  1. Compound Interest

  2. Compound Annualised Growth Rate

  3. Internal Rate of Return

  4. XIRR

  5. Post-Tax Return

  6. Pre-Tax Yield

  7. Inflation

  8. Purchasing Power

  9. Real Rate of Return

  10. Doubling, Tripling of Money (Rule -72, Rule -69)

The author has made a very good attempt to highlight that "The value of investments is only as much as their returns. So, it is critical to know how much your money is worth to plan your financial goals!"


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