Equation of Value (Mathematics of Finance) 

Thanks🙏😊

Thanks!

Thanks! Glad to know that.

Thanks! Links to other videos on the same topic: Equation of Value (Using Excel) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-pT9dlzzcIgA.html Equation of Value (Practical Problems) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cHiR19pUBpY.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1cDoSusz-qw.html

@@LetsUnderstand2gether sure

Thanks.....Nice to know that it was helpful.

Thank you so much

Thank you so much!

Thanks! and glad to know that it helped.

Yes.

Glad to know that it helped you! You may also go through the following videos related to the same topic: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cHiR19pUBpY.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1cDoSusz-qw.html Share it with your classmates also. Thanks!

Thanks!

Thanks

Any date can be taken as the focal date, but then you have bring all values of loans and payments at that point of time(focal date) to use that equation. For more clarity you may refer these videos: Practical problems of equation of value part 1 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cHiR19pUBpY.html part 2 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1cDoSusz-qw.html and Future and Present Value factors using calculator -ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-AIzih6TIg08.html

Sakshi, any point of time can be taken as the focal date, then just calculate the values of both the obligations at the focal date that you choose to make the comparison between the two(because money at two different points of time can't be compared). It means you can take t=1 as the focal date and calculate the values of old and new obligations at t=1 to compare the both. For more clarity you can go through the following videos: 1. Equation of Value (Mathematics of Finance)|Practical Problems Part -1 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cHiR19pUBpY.html 2.Equation of Value (Mathematics of Finance)| Find Number of Years i.e, n | Practical Problems Part -2 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1cDoSusz-qw.html 3.EQUATION OF VALUE using EXCEL //Mathematics of Finance// Business Mathematics through Excel ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-pT9dlzzcIgA.html

@@LetsUnderstand2gether thank you so much ma'am.. U know what i watched ur video n in 18 min only i am able to understand that topic easily. Thank you thank you thank so much for this amazing video 😍. I will surely watch another videos also.

Glad to know this 😊 It's my pleasure. Thanks!

There can be two cases: 1. When there is time value of money then value of loan = value of payment only if both these figures are calculated at one point of time. Example, loan of Rs. 10000 @10%p.a. if repaid after 3 years, then Payment = value of loan (calculated after 3 years) 2. No time value of money value of loan = value of payment even these two figures are at different points of time. Example, loan Rs. 10000 without interest if repaid after 3 years, then payment = value of loan (at any point of time i.e. 10000)

Thanks....you may refer these videos for clarity. Practical problems of equation of value part 1 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cHiR19pUBpY.html part 2 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1cDoSusz-qw.html and Future and Present Value factors using calculator -ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-AIzih6TIg08.html

It can be directly calculated with present value factor table or even using calculator.

The table value is 1.26247696....and values upto 4 decimal places are sufficient.

Thanks!