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Understanding Present Value


Understanding Present Value

Understanding Present Value

Learn more about present value and its use in financial economics.


Students: 879
Course Description

Present Value is one of the most widely used concepts in the financial world as its calculation can determine the current worth of a future sum of money or stream of cash flow given a specified rate of return. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings coming in or obligations going out.
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This free online financial economics course reviews what the concept of present value is all about and discusses how to calculate the present value using simple calculations. You will learn why the calculation of present value is extremely important in many financial calculations such as net present value, bond yields, spot rates, and pension obligations. Having completed this free course you will be able to calculate present value to help you decide whether you should accept a cash rebate, 0% financing on the purchase of a car or to pay points on a mortgage. This course will be of interest to professionals in the accounting and financial services sectors, to accounting, finance or economics students, or to the general public who wish to understand the concept of present value and how its calculation can help them with their personal finances.

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Certification

To qualify for your official ALISON Diploma, Certificate or PDF you must study and complete all modules and score 80% or more in each of the course assessments. A link to your Diploma certificate will then appear under the My Certificates heading of your My Account page.

Learning Outcomes

Learning outcomes - Understanding what Present value means; - Examine how to calculate the present value of something; - Learn the key factors in using present value to make financial decisions; - Overall general concept Present value.


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Module Title
Module 1: Understanding Present Value
Module 2: Present Value Assessment

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Background  
Course Rating (By Learners)
Course Title Understanding Present Value
Course # 455
Course Publisher Khan Academy
Course Category 2
Content Origin
Course Description  Present Value is one of the most widely used concepts in the financial world as its calculation can determine the current worth of a future sum of money or stream of cash flow given a specified rate of return. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings coming in or obligations going out. This free online financial economics course reviews what the concept of present value is all about and discusses how to calculate the present value using simple calculations. You will learn why the calculation of present value is extremely important in many financial calculations such as net present value, bond yields, spot rates, and pension obligations. Having completed this free course you will be able to calculate present value to help you decide whether you should accept a cash rebate, 0% financing on the purchase of a car or to pay points on a mortgage. This course will be of interest to professionals in the accounting and financial services sectors, to accounting, finance or economics students, or to the general public who wish to understand the concept of present value and how its calculation can help them with their personal finances.
License  This course is available from Khan Academy OpenCourseWare through the following Creative Commons licence:
Creative Commons License
Release Date 06 July 2012
   
Content  
Course Duration (Avg Learner) 1-2 Hours
Video/Audio High
Audio Only High
Animation None
Assessments Yes
 
Education Level
Age appropriateness 18+ Years
Minimum Grade/Class Level Higher High Secondary School
 
Validation Level 5
ALISON Testing Yes
Certification Availability
PDF Download Yes
Parchment Yes
Framed Certification Yes
   
Merchandise Availability
Marketing Information
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Course Forum  View

Study for Free at Your Own Pace! Start This Course

  • Ben Geoghegan Ireland Very clear explanation. 2014-12-03 15:12:22
  • Mugarura Joseph Uganda its very interesting and clear. 2014-12-01 07:12:01
  • Shirisha Yada India Excellent way of explaining the concept 2014-11-20 14:11:56
  • Mariyam Al shatta Syrian Arab Republic Thank you so much for this course! I had a great time listening and learned a lot. 2014-10-13 19:10:09
  • victor Iroegbu Nigeria It was highly educating and enlightening as it was quick and explicit and trully educational 2014-09-10 10:09:47
  • Geetika Vishnoi Other Good and useful 2014-07-19 11:07:51
  • Jonathan Salter United Kingdom excellent, thanks very much 2014-07-04 10:07:25
  • Mahdi Yousif Bahrain Great course information on understanding present value 2014-05-19 16:05:59
  • Mohamed Ayoub Egypt simple & great course 2014-05-06 19:05:34
  • Tracy Billings United States of America Good course. 2014-04-22 03:04:03
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Study for Free at Your Own Pace! Start This Course

Free, Online Understanding Present Value Course.