A beginners guide to Principles of Finance
This course introduces fundamental concepts in finance, providing students with a comprehensive understanding of key financial principles. It covers the essential tools and techniques used in both personal and corporate finance, focusing on the time value of money and its application in financial decision-making. Key topics include:
What you’ll learn
- Basics of Finance ( Personal Business and Public).
- Time Value of Money using Formulae.
- Interest calculations on Deposits and Borrowings.
- Investments and earnings in Share Market and Mutual Funds.
Course Content
- Introduction to the Module and Welcome –> 10 lectures • 2hr 40min.
Requirements
This course introduces fundamental concepts in finance, providing students with a comprehensive understanding of key financial principles. It covers the essential tools and techniques used in both personal and corporate finance, focusing on the time value of money and its application in financial decision-making. Key topics include:
Simple Interest: The course explains the calculation of simple interest, where interest is calculated only on the initial principal amount. This concept is used in basic loans and investments.
Compound Interest: A deeper dive into compound interest, where interest is calculated on the initial principal and the accumulated interest over previous periods. Students learn how compound interest impacts long-term investment growth and loan repayments.
Rule of 72: This rule provides an approximation for the time required to double an investment at a given annual rate of return. It is a valuable tool for investors to quickly estimate growth potential.
Present Value (PV) and Future Value (FV): The course covers the principles of present value and future value, teaching students how to calculate the worth of future cash flows in today’s terms and how to project the future value of current investments or borrowings.
Deposits and Borrowings: Students will learn how present and future value concepts apply to various financial scenarios, including savings deposits and loans. These tools help individuals and businesses make informed decisions regarding investments, savings, and borrowing strategies.
By the end of the course, students will have a solid understanding of how to manage money in the context of loans, investments, and savings, and how to make decisions that optimize financial outcomes.