• Discuss the role of time value in finance particularly future (compound) value and present
(discounted) value
• Understand the concept of future value, its calculation for a single amount, compounding of interest more frequently than annually and find the future value of annuities
• Review the concept of present value, its calculation for a single amount and determine the present value of a mixed stream of cashflows, an annuity and a perpetuity
• Describe procedures involved in determining deposits to accumulate a future sum, loan amoratisation and finding interest on growth rates
• Develop further aspects of application of compounding and discounting techniques, namely,
effective and nominal rates of interest and discount, present value of an annuity payable monthly/quarterly/half-yearly, and effective and flat rates of interest
