This chapter covers the fundamental concepts of simple and compound interest, including future and present value calculations, the time value of money, and interactive exercises to reinforce key financial principles.

Course Introduction

Simple Interest

Poll: Value of Money

Time Value of Money

Calculating FV Using Simple Interest

Present Value Calculation

Calculating PV Using Simple Interest

Compound Interest

Calculating FV Using Compound Interest

Calculating PV Using Compound Interest

FV & PV in Excel

Simple vs Compound Interest

Simple & Compound Interest

This chapter explores the relationship between nominal and effective interest rates, the impact of compounding frequency, and key calculations for future and present values, supported by interactive exercises.

Changing the Compounding Frequency

Compounding Frequency & Future Values

Calculating FV when n = 1

Calculating FV when n > 1

Calculating PV when f > 1 and n > 1

Calculating Present Value

Calculating Present Value in Excel

Effective Rate vs Nominal Rate

Effective vs Nominal Rate

Effective vs Nominal Rate II

Calculating the Effective Interest Rate

Converting Effective & Nominal Interest Rates

The Language of Compounding

Nominal and Effective Interest Rates

This chapter covers the principles of discounted cash flows, including annuities, loan amortization, net present value (NPV), and internal rate of return (IRR), with interactive exercises for practical application.

Discounted Cash Flow Overview

Discounting a Single Cash Flow

Annuities Overview

The Annuity Factor

Annuity Characteristics

An Auto Loan as an Annuity

Using the PMT function for an Annuity

A Mortgage as an Annuity

Amortizing a Loan

Net Present Value

Understanding NPV

Internal Rate of Return

Understanding Internal Rate of Return

Discounted Cash Flows

 This chapter introduces bond pricing fundamentals, including the relationship between price and yield to maturity (YTM), and provides hands-on practice with Excel-based calculations and interactive exercises.

What is a Bond

Pricing a Bond

Relationship Between Price and YTM

Options

The yield to maturity decreases

The yield to maturity increases

YTM and Bond Prices

Using Excel to Price a Bond

Using Excel to Find YTM

Bond Pricing

This chapter explores key statistical concepts for finance, including measuring returns, volatility, standard deviation, correlation, and probability, with practical Excel applications and interactive exercises.

Using Statistics to Describe Price Charts

Measuring Returns

Arithmetic vs Continuously Compounded Returns

Measuring Volatility

Calculating Standard Deviation in Excel

Quoting Volatility

Comparing Securities

Statistical correlation

The Normal Distribution

Calculating Probabilities

Volatility & standard deviation

Finding the Distance From the Mean

Course Summary

Statistics for Finance

Excel Templates and Course Presentation

The Math for Finance Professionals course from CFI equips finance professionals with essential mathematical skills to analyze financial data, manage risk, and evaluate investment opportunities. This course builds a strong foundation by exploring key financial concepts, including the comparison of simple and compound interest, their applications in compounding and discounting cash flows, and the distinction between nominal and effective interest rates. Learners will develop practical skills that can be directly applied to real-world financial scenarios. The course concludes with an introduction to fundamental statistical concepts used in performance measurement and risk management, reinforcing a hands-on learning experience through Excel applications and Reuters screenshots.

<h2>Foundation of Financial Mathematics</h2> <p>Begin your journey into the quantitative aspects of finance by exploring the fundamental principles of interest calculations, including the differences and applications of simple and compound interest. Understanding these concepts is crucial for mastering the techniques of compounding and discounting cash flows, which are vital for accurate financial analysis and decision-making. This section establishes a robust foundation for finance professionals to handle future financial challenges.</p> <h2>Practical Applications and Tools</h2> <p>The course then advances to applying these foundational concepts in real-world financial tasks. Learners will engage with practical examples to deepen their understanding of how to manage risk and assess investment opportunities effectively. This includes hands-on Excel exercises and analysis of real data through Reuters screenshots, enabling learners to apply mathematical principles to live financial data and scenarios.</p> <h2>Statistical Methods for Finance</h2> <p>In the concluding section of the course, focus shifts to the statistical methods essential for performance measurement and risk management in finance. Participants will explore various statistical tools and techniques, learning how to implement these methods in practical, finance-related applications. This part of the course reinforces learning through direct application, preparing participants to leverage statistical analysis in their day-to-day financial roles.</p>

Learn essential finance math skills with practical Excel exercises and real-world examples.

Math for Finance Professionals

Grundlagen der Finanzen mit CFI

YTM and Bond Prices

Math for Finance Professionals

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