Interest rate wouldnt be exactly the equation initial investment × (1 + (int rate × # of periods) because every period increases the increment. For his example, after 1 increment of time, $100 at 10% int rate would be $110. But now, he's getting interest on $110 INSTEAD of his $100. Therefore, his next increment at 10% is $11 more, so he'd be at $121. Then, he would get $12.10 for his next increment, so he'd have $133.10, then 13.31%, so $150.81, then his total (after 5 increments) of $173.55, NOT $150.
Thank you for the great work. You make it easy to understand the basic concept. I will definitely share this video to my 18 year-old daughter. By the way, in your last page of presentation, in your last sentence, I think it should have been written $1000 per month instead of per year.
I keep ending up with a wrong result on the perpetuity paid monthly. I calculate PV = 1000 / (0.05/12). My result is PV = 240000. What am I doing wrong?
For the general ordinary annuity formula, do you know why it is to the power of 5? When only 4 of the payments are accruing interest? I cannot get my head around it.
I have mid-semester Monday and I was seriously doubting getting a pass, but now, I definitely feel more than ready. Thank you so much. Continue the great work.
Good video, however it would be better to put text explanations at top for viewers using cell phone and pause to review. The bottom of screen bocks text when paused
thank you so much you have explain in details and more clear the entire chapter 4 and 5 for me. well done and you are not helping me only but the entire generation in difficulties with corporate finance course.
Was watching this to prepare for a finance course at my University (FIN3403 for any UCF students out there). I now feel very prepared for this course, and much more confident about passing with a great grade than before. Thank you for this video!
This video is very helpful, simple and clear explanations. I had a bit of struggle with calculating annuities or differntiating them but now I am confident with my understanding and applying the correct formulars. Thank you
What is Time Value of Money and more importantly, how does it affect your personal finance? The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future; the dollar on hand today can be used to invest and earn interest or capital gains. Read More Here: www.globalfinanceschool.com/blog-post/time-value-money
According to my business textbook, money is also a store of value and a unit of account. Money is a store of value because you can buy things with it in the future. It's also a unit of account meaning it lets us measure the relative value of good and services. I acts as a measure of worth for determining wages and for buying and selling products.
at first I was confused on what are the difference ordinary and annuity due. By this video the much easier way to understand opened on my mind! thankyou so much sir!!
If you learned something from my video please like the video and subscribe to my channel. I truly appreciate your support!
Great vid but you need a better mic
This video is great but the constant ads every minute is terrible. GFY
This is one of the best tvm lesson I've ever watched. I was able to know the difference between Ordinary Annuity and Annuity due... Thank you so much
The last problem was wrong. its actually $240,000 for the present value of a perpetuity. As: $1000/(0.05/12) = $240,000
Just a heads up!!
Great teaching, very useful. Thank you and JESUS bless you
Thanks for watching
i was lost but now u helped me and am ready for my test...u 100% more better than my professor
Interest rate wouldnt be exactly the equation initial investment × (1 + (int rate × # of periods) because every period increases the increment. For his example, after 1 increment of time, $100 at 10% int rate would be $110. But now, he's getting interest on $110 INSTEAD of his $100. Therefore, his next increment at 10% is $11 more, so he'd be at $121. Then, he would get $12.10 for his next increment, so he'd have $133.10, then 13.31%, so $150.81, then his total (after 5 increments) of $173.55, NOT $150.
....I just got to the second part lol
One of the best TVM lectures I have come across. You break it down so simple. God Bless You
Too many ads!!!!
I was so confused about the difference between ordinary annuity and annuity due! This is very helpful! Thank you so much for sharing.
Thank you for the great work. You make it easy to understand the basic concept. I will definitely share this video to my 18 year-old daughter. By the way, in your last page of presentation, in your last sentence, I think it should have been written $1000 per month instead of per year.
I keep ending up with a wrong result on the perpetuity paid monthly. I calculate PV = 1000 / (0.05/12). My result is PV = 240000. What am I doing wrong?
just approximation made by your calculator
This video has just saved me. I had given up going to the exam. Thank you so much everything is well explained. 🙏
For the general ordinary annuity formula, do you know why it is to the power of 5? When only 4 of the payments are accruing interest? I cannot get my head around it.
this video was helpful but the constant ads are ridiculous!
I have mid-semester Monday and I was seriously doubting getting a pass, but now, I definitely feel more than ready. Thank you so much. Continue the great work.
Thank you a lot, I was enlightened by everything. This videos very helpful ❤️
this was rilly good ..i have a retake paper on 5th jan 2022 .. wish me luck
In simple interest what does the 1 symbolise ?…. This is mentioned at the beginning when explaining simple interest ?
Thanks so much !
I've a test on this next week and it was a good bit confusing for me, but now it is so much clearer
10+ ads on a 20 minute educational video? Godspeed, capitalists.
Great video...Thanks so much
Wow... nailed it.
thank you, i am enlightened
Good video, however it would be better to put text explanations at top for viewers using cell phone and pause to review. The bottom of screen bocks text when paused
these models don't account for inflation....
White Melissa Garcia Lisa Garcia Robert
thank you so much you have explain in details and more clear the entire chapter 4 and 5 for me. well done and you are not helping me only but the entire generation in difficulties with corporate finance course.
Thank you so much
THANK YOU!!!!
Thanks for watching
Great video. Thank you!
Explained in very understandable and simplified way... great work! 👍
Real Estate Finance are compounded in interest
very helpful, thank you '
Was watching this to prepare for a finance course at my University (FIN3403 for any UCF students out there). I now feel very prepared for this course, and much more confident about passing with a great grade than before. Thank you for this video!
I didnt understand the last perpetuity part , why did we divide by rate instead of 1 + r ??
Thanks for Breaking this down Barney style!!
thank you very much sir
Thanks!
Thank You Soo Much Sir
Thank you so much!! You helped me so much to understand all of this for my personal finance class!!!
Thank you so much.. you are a star!
Thank you very much
13:23, it sould be pmt =1000 not fv=1000, because you will receive it 1000 on monthly basis . then fv will be 12252.80. if i am not wrong
Bless your hearts 💚
Great ⭐️⭐️⭐️
Why have riches peoples only standard education,institution etc...???
still don't get it hmmmm?
Great video
very helpful
Thankyou so much you helped me understand everything otherwise i was s confused. God bless you.
Bravo
Done
Thank you so....this single video made my all concepts clear..... Thanks!
Is the future value of money worth more? The Fed keeps printing and deflating the dollar
This video is very helpful, simple and clear explanations. I had a bit of struggle with calculating annuities or differntiating them but now I am confident with my understanding and applying the correct formulars. Thank you
Great work 💯
I like your explanations..
What is Time Value of Money and more importantly, how does it affect your personal finance? The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future; the dollar on hand today can be used to invest and earn interest or capital gains. Read More Here:
www.globalfinanceschool.com/blog-post/time-value-money
Dear Sir, I will be taking finance management next term, and I am grateful to have come across your channel. New Subscriber.😁😁😁😁
I think there is a mistake at 21:18 , you say "we receive 1000/month and you write 1000/year" witch could be confusing
Excellent presentation. Very helpful. Thank you.
sir in your last question your answer is 238095.00 but the answer is 2400000
GRAND
It was helpful and useful, thanks. will watch it over and over till i get it finally. Thank you
It was really confusing before....but it is well understood
Money is a Medium of exchange, so that means it has no full value
According to my business textbook, money is also a store of value and a unit of account. Money is a store of value because you can buy things with it in the future. It's also a unit of account meaning it lets us measure the relative value of good and services. I acts as a measure of worth for determining wages and for buying and selling products.
excellent educational video thank you
Thank you so much for the great illustration of time value of money
Typo Error in your perpetuity slide example numerical. Very good video
Very good explanation and easy to understand. Keep doing with some more vidoes
Excellent video. Thank you kindly
at first I was confused on what are the difference ordinary and annuity due. By this video the much easier way to understand opened on my mind! thankyou so much sir!!
Thank you very much. The way you explained it is better than any professors I have ever met. Thanks
Thank you very much! You explain this very well and it is very helpful.
Thank you.. You simplified it for me.
For the very first time i am cleared to make diffrences between ordinary and due annuity
Thanks, this is really helpful! It is very clear.
Easy to follow.. Great explaining. Thank you!
Present value formula is initial investment/interest rate raised to the power of the number of years invested.
Great video. Thank you!!
Excellent Job! Thank you.
Your very good at explaining, everything was crystal clear. Well Done and thanks.
Very helpful, thank you.
Thanks for your time. It definitely made my life easy in understanding the basics.
You da GOAT ✊🏽
Thank you so much. This was very clear to me. I hope you do more videos.
thank you for this explanation this was helpful
thank you, I feel so smart now
You sound like voice actor Steve Blum!
Too many ads popping up now, throughout the entire video.
Thank you so much sir for such a wonderful lecture .God bless you. Keep going on.
Mate, You are awesome. Thank you :)
sgt membantu thank 😘
YOU ARE THE BEST, simply
tnx a ton.......
this vedio has really helped me to get a good clarity on the concept.
great tutorial
Thank you. It was very helpful.
thanks a lot.
at least have understood everything in this video
Thank you, Can I download this video. I am not able to do so now.
thank you so much,It really helped me