Time Value of Money

This tutorial explains how to calculate the present and future value of both lump sums and annuities, as well as the present value of perpetual annuities.

It also explains how to use a financial calculator and an Excel spreadsheet to calculate present and future values.

• Assumptions and Background (4 minutes)
• Single Payment (8 minutes)
• Annuities(10 minutes)
• Perpetual Annuities (3 minutes)
• Interest Rate Per Period (6 minutes)
• Financial Functions in Excel (12 minutes)
• Financial Calculators (5 minutes)
• Comprehensive Problem (3 minutes)

Michael McIntyre, Ph.D., CA
Associate Professor of Finance

Sprott School of Business
Carleton University
Ottawa, Ontario