This instructor-led live training is designed to provide participants to gain mastery on principles of finance. You will learn the fundamentals of principles of finance and with greater emphasis on the functionality and application to your work or study.
Finance is a field of study of the relationship of three things; time, risk and money.
The Time Value of Money is one of three fundamental ideas that shape finance.
The Time Value of Money explains why, "A dollar today is worth more than a dollar tomorrow". This is primarily due to the market for loanable funds and inflation. If someone has a dollar today then they also have the opportunity to loan/invest that dollar at some interest rate. Therefore, a dollar today in time t, would be worth $1.00 plus some interest rate, i. That is more than a dollar by itself in the future. An example for inflation would be, let's say you have $1 and you can buy 10 candies today. For the same 10 candies tomorrow you have to pay $1.20. So, due to inflation, for the same 10 candies, today you pay less than you would pay tomorrow
Inflation refers to the decrease in the purchasing power. Deflation refers to the increase in the purchasing power. In layman terms, inflation causes not the value of money to decrease but the amount of consumables/items that you can now purchase to decline in quantity. Look at the example above. $1 is still $1 but after inflation the individual can probably buy only 8 candies for the same $1 amount.
Course Category: Finance