Present value, NPV, IRR, annuities, and payback — the core toolkit of finance courses.
Use the annuity formula to solve for an equal loan payment or recurring deposit from a known balance, rate, term, or savings target.
Use the effective annual rate formula to convert a nominal rate into a true one-year compounded rate and compare loans or savings on the same basis.
Use the future value formula to compound a lump sum, convert annual rates to periodic rates, count periods, and verify the result year by year.
Learn the IRR formula, solve it with trial and error or a spreadsheet, interpret the result, and recognize multiple-IRR problems.
Use the NPV formula step by step, discount uneven cash flows, interpret the result, and avoid the common Excel timing error.
Learn the payback period formula for equal and uneven cash flows, calculate a partial year, and understand what payback leaves out.
Use the perpetuity formula to value constant or growing cash flows, with worked examples, timing rules, and the condition that discount rate exceeds growth.
Use the present value formula to discount a future lump sum, align rates with compounding periods, and check the result with a worked example.
Calculate the present value of an annuity step by step, including ordinary annuities, annuities due, rate conversion, and payment timing.
Understand the time value of money with present value and future value formulas, a worked example, timelines, and common mistakes.