{"product_id":"foundations-and-applications-of-the-time-value-of-money-isbn-9780470407363","title":"Foundations and Applications of the Time Value of Money","description":"\u003cp\u003eComprehensive coverage of the time value of money\u003c\/p\u003e \u003cp\u003eIn this book, authors Pamela Peterson Drake and Frank Fabozzi fully expand upon the type of time value of money (TVM) concepts usually presented as part of overviews given in other general finance books. Various TVM concepts and theories are discussed, with the authors offering many examples throughout each chapter that serve to reinforce the tools and techniques covered. Problems and detailed solutions-demonstrated using two different financial calculators, as well as Excel-are also provided at the end of each chapter, while glossary terms are provided in an appendix to familiarize you with basic terms.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides the basic foundations of the time value of money\u003c\/li\u003e \u003cli\u003eCovers issues ranging from an introduction of financial mathematics to calculating present\/future values and understanding loan amortization\u003c\/li\u003e \u003cli\u003eContains problem\/solution sets throughout, so you can test your knowledge of the topics discussed\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eUnderstanding the time value of money is essential, and this reliable resource will help you gain a firm grasp of its many aspects and its real-world applications.\u003c\/p\u003e \u003cp\u003ePreface ix\u003c\/p\u003e \u003cp\u003eAbout the Authors xi\u003c\/p\u003e \u003cp\u003eIntroduction xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One The Basics of the Time Value of Money 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Value of Compounding 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCompounding 7\u003c\/p\u003e \u003cp\u003eCalculator and Spreadsheet Solutions 11\u003c\/p\u003e \u003cp\u003eFrequency of Compounding 14\u003c\/p\u003e \u003cp\u003eSummary 20\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 21\u003c\/p\u003e \u003cp\u003eProblems 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Don’t Discount Discounting 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDiscounting 23\u003c\/p\u003e \u003cp\u003eDiscounting More Than One Future Value 31\u003c\/p\u003e \u003cp\u003eDetermining the Number of Compounding Periods 35\u003c\/p\u003e \u003cp\u003eSummary 38\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 38\u003c\/p\u003e \u003cp\u003eProblems 39\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Cash Happens 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValuing a Stream of Future Cash Flows 42\u003c\/p\u003e \u003cp\u003eValuing a Perpetuity 51\u003c\/p\u003e \u003cp\u003eAnnuities 54\u003c\/p\u003e \u003cp\u003eSummary 61\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 62\u003c\/p\u003e \u003cp\u003eProblems 62\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Yielding for Yields 65\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAnnualized Rates of Interest 65\u003c\/p\u003e \u003cp\u003eDetermining the Unknown Interest Rate 77\u003c\/p\u003e \u003cp\u003eRules 88\u003c\/p\u003e \u003cp\u003eSummary 89\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 90\u003c\/p\u003e \u003cp\u003eProblems 90\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two A Few Applications 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Loans 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLoan Amortization 95\u003c\/p\u003e \u003cp\u003eInterest Rates on Loans 104\u003c\/p\u003e \u003cp\u003eDetermining the Number of Periods 108\u003c\/p\u003e \u003cp\u003eVariations on the Theme 109\u003c\/p\u003e \u003cp\u003eSummary 114\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 114\u003c\/p\u003e \u003cp\u003eProblems 115\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Saving to Spend 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValuing a Deferred Annuity 119\u003c\/p\u003e \u003cp\u003eAnnuities with Annuities 126\u003c\/p\u003e \u003cp\u003eA Bit of Realism 135\u003c\/p\u003e \u003cp\u003eSummary 138\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 139\u003c\/p\u003e \u003cp\u003eProblems 139\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Values Tied to Bonds 141\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBond Basics 142\u003c\/p\u003e \u003cp\u003eCalculating the Yield to Maturity 154\u003c\/p\u003e \u003cp\u003eIssues 157\u003c\/p\u003e \u003cp\u003eInterest Rates 163\u003c\/p\u003e \u003cp\u003eYield Curves 164\u003c\/p\u003e \u003cp\u003eSummary 169\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 170\u003c\/p\u003e \u003cp\u003eProblems 171\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Taking Stock 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat’s in a Value? The Basics of Stock Valuation 174\u003c\/p\u003e \u003cp\u003eReturn on Stocks 187\u003c\/p\u003e \u003cp\u003eSummary 192\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 193\u003c\/p\u003e \u003cp\u003eProblems 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 A Capital Idea 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Net Present Value 198\u003c\/p\u003e \u003cp\u003eThe Profitability Index 201\u003c\/p\u003e \u003cp\u003eThe Internal Rate of Return 204\u003c\/p\u003e \u003cp\u003eSummary 214\u003c\/p\u003e \u003cp\u003e“Try It” Solutions 215\u003c\/p\u003e \u003cp\u003eProblems 216\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Finance Fact or Fiction? 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFact or Fiction: It Pays to Get an MBA 219\u003c\/p\u003e \u003cp\u003eFact or Fiction: Leasing a Car Costs Less than Buying a Car 222\u003c\/p\u003e \u003cp\u003eFact or Fiction: Gold Has Always Been a Good Investment 225\u003c\/p\u003e \u003cp\u003eSummary 230\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix A Using Financial Calculators 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePreparing the Calculator 232\u003c\/p\u003e \u003cp\u003eThe Basics 235\u003c\/p\u003e \u003cp\u003eFinancial Functions 237\u003c\/p\u003e \u003cp\u003eTips 242\u003c\/p\u003e \u003cp\u003eTroubleshooting Problems 243\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix B Using Spreadsheets in Financial Calculations 247\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Basics 247\u003c\/p\u003e \u003cp\u003eTime Value of Money Functions 248\u003c\/p\u003e \u003cp\u003eCash Flow Functions 252\u003c\/p\u003e \u003cp\u003eOther Useful Functions for Financial Mathematics 253\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix C Formulas 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix D Glossary 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix E Solutions to End-of-Chapter Problems 265\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndex 281\u003c\/p\u003e   \u003cp\u003e\u003cb\u003ePAMELA PETERSON DRAKE, P\u003csmall\u003eH\u003c\/small\u003eD, CFA,\u003c\/b\u003e is the J. Gray Ferguson Professor of Finance and Department Head of Finance and Business Law at James Madison University. Prior to joining James Madison University, she was an associate dean and professor of finance at Florida Atlantic University, and, previous to that, a professor at Florida State University. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eFRANK J. FABOZZI, P\u003csmall\u003eH\u003c\/small\u003eD, CFA, CPA,\u003c\/b\u003e is Professor in the Practice of Finance and Becton Fellow at the Yale School of Management, Editor of the \u003ci\u003eJournal of Portfolio Management,\u003c\/i\u003e and Associate Editor of the \u003ci\u003eJournal of Structured Finance\u003c\/i\u003e and the \u003ci\u003eJournal of Fixed Income.\u003c\/i\u003e     \u003c\/p\u003e\u003cp\u003eUnderstanding financial transactions—whether involving investing, borrowing, or lending—requires an understanding of the time value of money (TVM), as well as the financial mathematics that go along with it. And while TVM is an essential aspect of finance, there aren't many resources that take the time to fully explain it. \u003c\/p\u003e\u003cp\u003eIn this book, the experienced author team of Pamela Peterson Drake and Frank Fabozzi fully expand upon the type of TVM concepts usually presented as part of an overview given in other general finance books. Throughout these pages, various TVM concepts and principles are discussed, with the authors offering examples in each chapter to reinforce the tools and techniques covered. Problems and detailed solutions—demonstrated using two different financial calculators, as well as Excel—are also provided at the end of each chapter, while glossary terms are included in an appendix, to familiarize you with basic terms. \u003c\/p\u003e\u003cp\u003eDivided into two comprehensive parts—The Basics of the Time Value of Money and A Few Applications—this comprehensive guide can help you analyze almost any financial transaction and evaluate cash flows to determine values at different points in time or returns on investments. Written with both the aspiring and experienced financial professional in mind, \u003ci\u003eFoundations and Applications of the Time Value of Money\u003c\/i\u003e: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eDeals with the compounding and discounting of lump sums—translating single values through time\u003c\/li\u003e \u003cli\u003eShows how valuing series of cash flows is a simple extension of discounting or compounding lump sums\u003c\/li\u003e \u003cli\u003eDemonstrates how to calculate the annual percentage rate, the effective annual rate, and the internal rate of return for financial transactions\u003c\/li\u003e \u003cli\u003eLooks at loans and how they may be amortized\u003c\/li\u003e \u003cli\u003eFocuses on deferred annuities—which are typically used within the retirement arena—and other \"saving-for-future-spending\" scenarios in which there is more than one withdrawal of funds in the future\u003c\/li\u003e \u003cli\u003eAddresses the valuation of stocks and bonds using TVM mathematics\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eRounding out this detailed discussion, Peterson Drake and Fabozzi examine the applications of the TVM mathematics with regard to: evaluating whether to get an MBA, deciding whether to lease or buy a car, and whether gold is a good investment. And while this is not a personal finance book, the authors chose examples that might interest you in immediately applying the techniques outlined here. \u003c\/p\u003e\u003cp\u003eMaking more informed financial decisions relies on a firm grasp of the time value of money. This book has the insights and advice needed to achieve such a goal.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989237252325,"sku":"NP9780470407363","price":63.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470407363.jpg?v=1761783324","url":"https:\/\/k12savings.com\/products\/foundations-and-applications-of-the-time-value-of-money-isbn-9780470407363","provider":"K12savings","version":"1.0","type":"link"}