Examine how the time value of money relates to loans or investments, and how planning and action now have predictable consequences for the future.
- Let's do a little thought experiment.…- Okay.…- Imagine that you are a three-year-old child.…- [ Man With Glasses] Okay I've got it.…I'm a three-year-old child.…I'll imagine that I'm my granddaughter Evie.…She's three.…- [Man Without Glasses] Perfect.…I offer you one piece of chocolate now…or one piece of chocolate tomorrow.…Which will you take?…- Please.…I'll take the chocolate now.…- Exactly.…Any child understands what I will call…the time value of candy.…Candy now is worth more than candy in the future.…What if I offer you one piece of chocolate now…or five pieces if you wait until tomorrow?…- A three-year-old would probably still take…the one piece right now.…
- I agree.…For such a young child, the future…is such a vague and unpredictable place…that it makes sense to take your candy now.…In fact, an important part of growing up…is learning that planning and action now…have predictable consequences for the future.…So, let's change the example.…Imagine that you are you.…I offer you the following deal:…100 pieces of chocolate now…
In this course, join accounting professors Jim and Kay Stice as they help you discover how to leverage the power of numbers to approach businesses problems and make everyday decisions. They explore the power of ratios and percentages, how to monitor and evaluate your budget, how to forecast the timing and amount of a business loan, and much more.
- Explain the rule of 72.
- Determine net income based on wholesale and retail costs.
- Apply the appropriate methods to convert fractions to percentages.
- Define “consumer price index.”
- Identify the difference between mean and median.
- Recall how to calculate conditional and unconditional probability.
Skill Level Beginner
1. The Power of Ratios and Percentages
2. Applied Probability and Statistics
3. Numerical Planning and Measurement
4. Interest: Paying and Earning
5. The Art of Numerical Estimation
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