One day, Edwin met an insurance salesperson over lunch. The insurance agent began his presentation by explaining the features of a savings plan. If Edwin is interested, he must ‘save’ RM 3,200 per year into the savings plan for 25 years, amounting to a ‘total savings’ of RM 80,000.
But at the end of 25 years, Edwin is projected to collect RM 100,000 in maturity benefit. So, what would be Edwin’s return rate from this savings plan?
The above is a classic example of a financial decision that could be made if you understand the Time Value of Money (TVM) concept. TVM is so useful in not just assessing savings plans but also in areas such as mortgages, car loans and as well as stock investments.
In this webinar, I shared:
– The fundamental concept of understanding PV, FV, Pmt, NPER & Rate
– How to calculate the effective interest rate of car loans?
– Assessing the real returns of financial products
– Real-life case studies to evaluate financial decisions
– How to use Google Spreadsheet / Ms Excel as your ultimate Financial Calculator?
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