Time Value of Money Concepts and Calculations
Free CFP Exam lesson in General Principles of Financial Planning. 17 min read, ~2,530 words.
Every TVM problem has five variables (PV, FV, N, I/Y, PMT), know four, solve for one. Ordinary annuity = end of period; annuity due = beginning. Wrong mode gives an answer off by exactly (1 + r). Real rate = (1 + nominal) / (1 + inflation) - 1, always...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- B.12
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