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Understanding Present Value

Accounting
Free Course

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

  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Publisher

    Khan Academy
Description Outcome Certification View course modules

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.

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 of Present value.

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

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All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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