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Understanding Present Value


Understanding Present Value
Understanding Present Value

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


Join 1,206 other students.
3 11

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.

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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Course Rating (By Learners): 3 stars based on 11 reviews
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: Post-Secondary
Validation: Level 5
ALISON Testing: Yes
Certification Availability
PDF Download: Yes
Parchment: Yes
Framed Certification: Yes

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  • David Fitzpatrick
    David Fitzpatrick United Kingdom Very good course. 2015-05-19 15:05:36
  • Suzana Rachel Abraham
    Suzana Rachel Abraham India Good course 2015-02-27 09:02:56
  • Ben Geoghegan
    Ben Geoghegan Ireland Very clear explanation. 2014-12-03 15:12:22
  • Mugarura Joseph
    Mugarura Joseph Uganda its very interesting and clear. 2014-12-01 07:12:01
  • Shirisha Yada
    Shirisha Yada India Excellent way of explaining the concept 2014-11-20 14:11:56
  • Mariyam Al shatta
    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
    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
    Geetika Vishnoi [[]] Good and useful 2014-07-19 11:07:51
  • Jonathan Salter
    Jonathan Salter United Kingdom excellent, thanks very much 2014-07-04 10:07:25
  • Mahdi Yousif
    Mahdi Yousif Bahrain Great course information on understanding present value 2014-05-19 16:05:59
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Study for Free at Your Own Pace! Start This Course

Free, Online Understanding Present Value Course.