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ch03

ch03

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Published by: MSA-ACCA on Jul 19, 2009
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07/19/2009

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Chapter 3:The Time Value of Money:An introduction tofinancial mathematics
Copyright
©
2002 McGraw-Hill Australia Pty Ltd.PPT t/a
Business Finance
8e by Peirson et al.
3-1
 
Copyright
©
2002 McGraw-Hill Australia Pty Ltd.PPT t/a
Business Finance
8e by Peirson et al.
3-2
Learning ObjectivesLearning Objectives
A
Understand and solve problemsinvolving simple interest andcompound interest, includingaccumulating, discounting and makingcomparisons using the effectiveinterest rate.
A
Value, as at any date, contractsinvolving multiple cash flows.
A
Distinguish between different types of annuity and calculate their presentand future values.
 
Copyright
©
2002 McGraw-Hill Australia Pty Ltd.PPT t/a
Business Finance
8e by Peirson et al.
3-3
Learning Objectives (cont.)Learning Objectives (cont.)
A
Apply your knowledge of annuities tosolve a range of problems, includingproblems involving principal-and-interest loan contracts.
A
Distinguish between ordinary andgeneral annuities and make basiccalculations involving generalannuities.

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