4. The Time Value of Money

In this section

• Present Value and Future Value Concepts in Investing
  Explore the foundational concepts of present value and future value in investing. Learn how to calculate these values and understand their significance in financial decision-making.
• Understanding Interest Rates and Yields
  Dive into the world of interest rates and yields, exploring their impact on borrowing, savings, and investment returns. Learn to differentiate between simple and compound interest and master yield calculations for various investment types.
• The Impact of Inflation on Investments: Preserving Purchasing Power
  Learn how inflation affects your investments and the strategies to protect your portfolio from its impact. Understand the importance of achieving returns that outpace inflation to maintain purchasing power.
• Real vs. Nominal Returns: Understanding Investment Performance
  Explore the difference between real and nominal returns, crucial for investment success. Learn how inflation impacts your portfolio and how to calculate real returns for accurate financial planning.
• Calculating Compound Interest for Investment Growth
  Master the art of calculating compound interest to enhance your investment portfolio. Understand the formula, explore compounding frequencies, and practice real-world scenarios to maximize your financial growth.