This is great stuff!! much better than the content provided by my university. I'm studying corporate finance and currently watching your entire CF series.. Thankyou!!!
Awesome video edspira !!! i understood everything but will you please let me know how can i calculate power 10 on calculator to get $ 61.39? please help.. thanks in advance ...
Yes, there's a playlist on RUclips. Alternatively, you can see all the videos for Financial Accounting here: www.edspira.com/index-financial-accounting/ (Appendix A - Time Value of Money)
I very nice explanation, though over simplified. The Labor Department’s Bureau of Labor Statistics (BLS)’s official “annual” running average release in July, 2022 was 8.5% for the CPI, or consumer price index due to inflation. Shouldn’t the future value of today’s cash be calculated FIRST; BEFORE calculating the OPPORTUNITY LOSS versus expected rate of return for an investment? 5% doesn’t even keep pace with cost of living!
Using the info in previous video... FV = C x (1+r)^t Substitution of appropriate values... FV = 100 C = ? (This time we don't know. And C represents the present value of a future amount of cash) R = 5% (which is 0.05) T = 1 100 = C x 1.05 Therefore C = 100/1.05
I tried using this concept to calculate how much the present value has to be for me to get 1,000,000 dollars in 10 years with an interest rate of 4%, I got 675,564.1688. Did I go wrong somewhere?
excellent explanation - way better than any professor so far at school
Teacher, you are amazing I swear, I wish to have a teacher like you.
😀
This is great stuff!! much better than the content provided by my university.
I'm studying corporate finance and currently watching your entire CF series.. Thankyou!!!
Happy to help!
Well it's simple to understand, thanks for sharing your knowledge.
No problem. Best of luck in your studies!
God bless you, Michael. Seriously.
Thank you for the kind words!
Thank you very much for breaking it down in the simplest way possible. Very easy to understand and memorable.
you deserve smashes of likes and subs
Thank You so much sir.....It helps me a lot ........ Thank You again
Very clear!
Amazing video Edspira, really no need to attend physical classes :-)
Thank you Diptanil! That's the main goal behind these videos. Free business education for all :)
Thanks for this service I am certain that I am gonna ace my finance exam👏👏
you explain better than my teacher
Very clear. Thank you
Nice video, thank you🙏
Welcome 👍
thank you very much, it helps me a lot!
Thank you so much!
thankiu for sharing your knowledge :D
Thank you so very very much!
well, i have confusion about, what if we have compounding quarterly in this one year period. Please explain. Thanks
Awesome video edspira !!! i understood everything but will you please let me know how can i calculate power 10 on calculator to get $ 61.39? please help.. thanks in advance ...
Edspira, this is call present value of future cash flow? because i am confuse with single cash flow ..please let me knw
is there to watch these in the correct order?
Yes, there's a playlist on RUclips. Alternatively, you can see all the videos for Financial Accounting here: www.edspira.com/index-financial-accounting/
(Appendix A - Time Value of Money)
2:35 , you funny for that one
I very nice explanation, though over simplified.
The Labor Department’s Bureau of Labor Statistics (BLS)’s official “annual” running average release in July, 2022 was 8.5% for the CPI, or consumer price index due to inflation. Shouldn’t the future value of today’s cash be calculated FIRST; BEFORE calculating the OPPORTUNITY LOSS versus expected rate of return for an investment? 5% doesn’t even keep pace with cost of living!
you got a short term memory here? R is 5% loooooooool
2:37
What can we even do to get a guaranteed 5% return on investment per year? What pays 5% p.a. in real life?
How do you arrive at $61.39. what are you dividing or multiplying? that part I do not understand
You would multiply 1.05 ten times: 1.05x1.05x1.05x1.05x1.05x1.05x1.05x1.05x1.05x1.05= 1.6288946267774 (100 divided by that number equals the $61.39)
Chef John?
Using the info in previous video...
FV = C x (1+r)^t
Substitution of appropriate values...
FV = 100
C = ? (This time we don't know. And C represents the present value of a future amount of cash)
R = 5% (which is 0.05)
T = 1
100 = C x 1.05
Therefore C = 100/1.05
I tried using this concept to calculate how much the present value has to be for me to get 1,000,000 dollars in 10 years with an interest rate of 4%, I got 675,564.1688. Did I go wrong somewhere?