A New Method for Teaching the Time Value of Money
University of Hawaii at Hilo - Department of Business Administration
Journal of the American Academy of Business, Vol. 2, No. 1, pp. 72-79, September 2002
Students frequently experience difficulty in identifying the appropriate time value of money (TVM) technique to apply to a problem. This paper surveys the TVM presentation in seven popular introductory finance textbooks. A new presentation technique is then developed. The presentation technique is based on a simple method for identifying the appropriate TVM technique to apply to any problem. TVM techniques conducive to applying the calculations in a generalized setting are then presented. Visual aids are provided to assist students in selecting correct techniques. By using these techniques students are able to more easily identify appropriate TVM techniques.
Keywords: Time Value of Money, Teachcing Finance, Teaching Accounting, Teaching Economics
JEL Classification: A2Accepted Paper Series
Date posted: August 29, 2009
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