Ever found yourself wondering, “How much should I save every month to buy a car in 5 years?” Or confused about the difference between EMI and equal monthly installments?
Understanding the Time Value of Money (TVM) is essential not just for banking exams like JAIIB/CAIIB, but also for real-life financial decisions—like loans, savings, or investing. And that’s exactly what this session covers!
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In this detailed yet beginner-friendly video, we walk through:
- How to calculate Future Value (FV) and Present Value (PV)
- What’s an Ordinary Annuity vs. Annuity Due
- Sinking Fund planning for big purchases 🎯
- The difference between EMI & Equal Installments
- Easy calculator tricks to speed up your exams!
Whether you’re a banking aspirant, finance student, or just someone trying to manage money better—this video is for YOU. 🎓💰
👉 Watch the full session below, and don’t forget to drop your questions or doubts in the comments—we love hearing from you!
🎥 Before we dive in, watch this video for a complete breakdown:
🧠 Deep Dive into Concepts – Time Value of Money Explained (with Timestamps)
⏱ 00:00 – Future Value of an Ordinary Annuity
Learn how to calculate FV when regular investments are made at the end of each period.
Formula: FV = C × ((1 + i)n – 1) / i
Example: ₹5,000 invested annually at 12% for 5 years → ₹35,575
⏱ 00:02:30 – Bullet / Balloon Repayment Explained
Bullet Payment: Entire principal repaid at the end of the period. Coupon (interest) is paid annually.
Example: ₹80 annual interest & ₹1,000 repaid at maturity.
⏱ 00:04:45 – What is a Sinking Fund?
💡 Goal: ₹30 lakhs in 7 years at 10% → Deposit ₹3,16,218 annually
Used in: depreciation, loan repayment, and goal-based savings
⏱ 00:08:20 – Monthly Deposits to Reach a Goal
Want ₹10 lakh in 5 years, investing at 8%? → Monthly deposit = ₹13,596
⏱ 00:13:50 – Present Value of Monthly Annuity
Investing ₹600/month for 10 years at 12% p.a. gives you a present value of ₹41,818
⏱ 00:18:00 – Future Value of the Same Annuity
FV = ₹1,38,000 using compounding formula
⏱ 00:19:30 – EMI Calculation Using PV Formula
Loan = ₹1 lakh, 12% p.a., 2 years → EMI = ₹4,708/month
⏱ 00:24:00 – Equal Monthly Installment (EMI vs EMI 😅)
EMI = fixed monthly amount. Equal Installment = same principal, reducing interest.
⏱ 00:27:20 – Question Solving: PV of Loan with EMI
Practice: ₹10,000 loan over 1 year. Use PV annuity formula.
⏱ 00:27:55 – Recurring Deposit Future Value
₹16,000 annually for 3 years @10% → FV = ₹52,960
⏱ 00:29:53 – Present Value of ₹40k Annually for 20 Years
At 5% interest → Invest ₹4,98,113 today to receive ₹40k annually for 20 years
🧾 Download the Full PDF Notes (With Formulas + Practice Qs)
👉 Click below to download the complete PDF version of this session:
🧠 Conclusion – What You Learned Today
Understanding Time Value of Money isn’t just for exams—it’s for life. You now know:
- How to calculate FV, PV, EMI, and sinking fund values
- Importance of when you invest or repay
- Calculator tricks that save time in competitive exams
🔥 Whether you’re cracking JAIIB, planning your SIPs, or managing a home loan—these formulas are your superpower.
👉 Take action: Try solving 2–3 practice questions today!
💬 Got doubts? Drop them in the comments—we reply fast!
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