Finance is a complex subject. The word “finance” means spending, saving, investing, borrowing, lending, trading, and even tax, but there’s much more to it than that. This course helps you gain a basic understanding that can get you started on your path towards financial independence. Let’s see below
Time value of money
Time value of money is how investors measure the value of their investments over time, did you know you can invest on online gambling usa games. For example, if you invest $100 today and receive a 10% return each year, then you would have $110 after one year, $120 after two years and so on. Another way to look at this is that your $100 has grown by 10% per year because the amount invested ($100) divided by 1 plus 2 equals $110.
The discount rate
A discount rate is a number calculated using multiple annuities. It is used to calculate the present value of monetary amounts that occur in the future. You might be familiar with compound interest where interest compounds itself every month or year. An annuity is similar except that payments only begin immediately.But did you know you can play aussie online pokies and stand a chance to win big
The yield curve shows what happens when interest rates change. A yield curve is represented by three numbers: current yield (interest rate now), effective yield (what you earn based on the yield curve), and term (how long until the next coupon payment). The graph compares the current yield to the effective yield over different terms. Typically, the longer the maturity, the lower the effective yield. In other words, the effective yield tends to be higher for shorter-term bonds than for longer-term bonds.
In conclusion, these were the key ideas of finance. If you want to learn more about the topic, I recommend that you read the books listed above. However, don’t just read them – go through them!