Discover the Unfair Advantages of Using a Financial Calculator to:
– Calculate Interest Payments on Mortgages
– Make Return on Investments (ROI) Projections
– Know What Tomorrow’s Money is Worth Today
– Make Better Investment Decisions
– Plan Your Finances

Expert: KC Chong, Co-Author of Book Money Tips for Doctors


Financial educator, author and trainer

    16 replies to "Financial Calculator 101: Time Value of Money"

    • […] KC Chong: Financial Calculator 101 – Time Value of Money […]

    • Francis Lazarus

      unable to download

      • KCLau

        Hi Francis, we just tried the download links and it works. Try “right-click” and “save file as”.

    • Ling Tze Khoo

      where can I download this financial calculator ??

      • KCLau

        Search on Google Play store or Apple App Store on your smart phone.

    • chai suk fun

      Easy to understand

    • Muhammad Danial Bin Abdul Latiff

      KC Lau, what is the right method to answer this question yea?
      You bought an insurance education saving plan for your child when she was born 18 years ago. You paid RM 3000 each year for 18 years. When it matured this year, you received RM80,000. What is the effective compounding return rate?

      I calculated but got 4.42% but seems to be wrong though, could you help out?

      • KCLau

        You will need to use the BEGIN mode.
        Because in a savings plan, you pay the premium at the beginning mode, right from the beginning.

    • Ainul Naqiah

      Thanks 🙏 ✅

    • Jason Cheah

      The question no 4, I answered the interest rate is 4.42% but the system defaulted my answer is 4.00%.

      • KCLau

        You will need to use the BEGIN mode.
        Because in a savings plan, you pay the premium at the beginning mode, right from the beginning.


      Contents not bad, but website design is a bit confusing…

      • KCLau

        Hi Joseph, thanks for the feedback.
        May I know which part of the website design is confusing? so we can fix it.

    • Dr Saravanan Ramasamy

      Hi KC. One silly question. What was the purpose of converting all the nominal interest loans to effective interest loans? Were they only for calculation and comparison sake or are we supposed to calculate our nominal interest loans as effective interest loans to portray the true amount we are paying the financial institutions? For example, the car loan is a nominal interest loan. Do we have to convert it to an effective interest loan in real life calculation? Thanks.

      • KCLau

        The useful thing to do is to have a common rate that we can compare with.
        For example, the simplest is the FD rate. It is effective rate on annual basis.
        You also have the mortgage rate, comparable to FD rate. Mortgage no doubt will always have a higher rate than FD, so the banks can make profit from the difference.

        Then you have the car loan – which the rate is FLAT rate. When it says 3% flat rate, we couldn’t compare it to FD or mortgage. So you can convert it to effective rate, which will be somewhere ~5.5% depending on the loan tenure.

        Then also, you have your investment portfolio – Unit trust, stocks, dividend yields, rental yields, etc.

        But knowing what is the rate at each place, you know how to maximise your portfolio, and you will know
        – where to put the extra money
        – should you settle a loan? and which loan goes first?
        – should you withdraw EPF to pay off mortgage?
        – should you withdraw EPF for Unit trust investment?
        these sort of questions will be easier to answer if you know the opportunity cost of your money at each place.

        • Dr Saravanan Ramasamy

          Thanks for the explanation KC. I am much clearer now. Cheers.

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