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Discussion Post: Single and Annuity Cash Flow
Preparation
TVM is the foundation of mathematical finance that can be applied to corporate as well as personal finances. The TVM concept can be applied to single and multiple cash flows. However, in real life, you often come across financial applications that require multiple or annuity cash flows. You will apply the TVM concept to single and annuity cash flows.
Before beginning the discussion and reviewing the examples provided in the template, study Chapter 7, "Time Value of Money I: Single Payment Value," and Chapter 8, "Time Value of Money II: Equal Multiple Payments," from your Principles of Finance text. One must understand the TVM theory before being able to solve the TVM problems.
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