Finance Table of Contents Principal and Interest Principal and Interest – Background What’s Interest Payment? Tricks for Calculating the Amount of Interest What is Nominal Interest? Compound Interest Formula and Explanation What is Adjusted Interest? Nominal VS Real Interest Rates Effective Interest Rate and Its Common Uses Classification of Related Expenses Examples for Calculating the Effective Interest Understanding What is Real Interest Consumer Price Index and the Market Basket Real Interest Rate – Formula and Examples The Theory of Finance Effect of Interest Rates on Savers vs Debtors Factors Affecting the Present Value – Summary Calculation of Present Value for a Flow of Income Use of Present Value to Rate Profitability of an Investment in Projects What is Future Value? Future Value – Evaluation of Investment Profitability Overview on Uncertainty (Risk) in Investments Effect of Uncertainty on Interest Rates How Your Character Affects Your Financial Decisions Systematic Risk VS Specific Risk Introduction to Finance What is Present Value? How Do Interest Rates Affect Present Value? Present Value Means “How Much is it Worth to Us Today?” Present value VS Future value – The Decision Making Formula Measures Expectation VS Average Explained Use of the Expectation – Pros and Cons How to Calculate Standard Deviation The Meaning of Standard Deviation (σ) Result Distribution – Sample Distribution Meaning of Average Introduction of Related Terms Examples of Using Average in Finance Basket of Shares Stock Market Index – Basket of Shares Index of Any Basket of Shares The Behavior of Individual Shares Compared to the Basket of Shares Describing Behavior of Shares Using the β (beta) Index Principal and Interest Finance Principal and Interest
