Advances in Teaching the Time Value of Money

Students frequently experience difficulty in identifying the appropriate time value of money (TVM) technique to apply to a TVM problem. This paper offers a modification of a recently published TVM technique developed by Jalbert (2002) in order to help students understand and solve TVM problems. The modified technique developed here simplifies the previously developed technique by reducing the number of questions that students must examine to arrive at the appropriate TVM technique for a problem. In addition, the technique developed here eliminates the need for students to learn annuity techniques altogether. As such, the technique developed here specifically intends to meet the needs of students who experience difficulty in understanding annuities. Modified visual aids are provided to assist students in selecting correct techniques. By using these techniques, students will find it much easier to identify appropriate TVM techniques.

Keywords: Time Value of Money, Teaching Finance, Teaching Accounting, Teaching Techniques

JEL Classification: A2, M4

Suggested Citation: Suggested Citation

Jalbert, Terrance and Jalbert, Mercedes and Chan, Canri, Advances in Teaching the Time Value of Money (August 1, 2004). Journal of College Teaching and Learning, Vol. 1, No. 8, pp. 7-12, August 2004, Available at SSRN: https://ssrn.com/abstract=1461829