Learning Outcomes Concept of Time Value of Money Techniques of Time Value of Money Effective Rate of Interest Annuity Concept Concept of Perpetuity Loan Amortization Abstract The time value of money is the concept that shows the importance of money currently more than in future. FV = PV (1+ r/m) mt Discounting / Present Value Techniques PV = FV / (1+r) n Effective Rate of Interest It evaluates all of the various compounding bases, such as annually, semi - annually