TVM Practice Series: Master Periods - Years (N) Problems on the BA II Plus #tvm #baiiplus
FinEdge301
[{'start': '0.320', 'end': '5.200', 'text': "number of periods we're going to do some practice\xa0\nproblems for beginners it's going to be a quick"}, {'start': '5.200', 'end': '11.200', 'text': "video we're only doing three questions um but\xa0\nlet's go ahead and get into it so leave me"}, {'start': '11.200', 'end': '15.760', 'text': "your questions if you have any time value of money\xa0\nquestions leave me a question in the comments i'll"}, {'start': '15.760', 'end': '21.680', 'text': "be happy to make a video for you explaining how\xa0\nthat problem is solved all right also don't forget"}, {'start': '21.680', 'end': '26.880', 'text': 'you can download this file in the description and\xa0\nyou can follow along you can pause the video try'}, {'start': '26.880', 'end': '33.680', 'text': 'the question and then see how I solve it okay\xa0\nall right so just a quick overview um again'}, {'start': '33.680', 'end': '38.800', 'text': "we're going to do some get you some exposure to\xa0\nsome basic questions today it's going to be three"}, {'start': '38.800', 'end': '43.600', 'text': 'standard questions are not going to be as easy\xa0\nas the ones in the future value and present value'}, {'start': '43.600', 'end': '50.000', 'text': "video uh but they're they're going to be something\xa0\na little bit more natural more realistic of course"}, {'start': '50.000', 'end': '55.120', 'text': 'I want you to gain comfort with the time value of\xa0\nmoney timelines time value of money terms and the'}, {'start': '55.120', 'end': '61.680', 'text': "use of the BA2 Plus financial calculator all\xa0\nright let's get into the three questions for"}, {'start': '61.680', 'end': '68.640', 'text': 'today you know if you if you watch my uh my\xa0\nfuture value and present value video you can'}, {'start': '68.640', 'end': '74.080', 'text': "see I'm very consistent with the way that I work\xa0\nthrough my problems and I really like to explain"}, {'start': '74.080', 'end': '80.480', 'text': "to my students that you should you should approach\xa0\nit in a consistent method i'm not saying that my"}, {'start': '80.480', 'end': '85.440', 'text': "method is best if you find a method that works for\xa0\nyou that's fantastic but this is my method right"}, {'start': '85.440', 'end': '91.120', 'text': 'so I always like to use two highlighters\xa0\nand I like to go through the problem and'}, {'start': '91.120', 'end': '99.680', 'text': 'highlight all of the key terms I find so you\xa0\nhave $40,000 to invest today if you want to have'}, {'start': '99.680', 'end': '108.160', 'text': '$80,000 in the future and the annual interest rate\xa0\nis 6% and usually I I know the question is coming'}, {'start': '108.160', 'end': '115.760', 'text': 'obviously I wrote it how many years will it take\xa0\nto reach your goal now the reason I highlight the'}, {'start': '115.760', 'end': '122.960', 'text': 'question in in blue is that it really helps you\xa0\nfocus on what is being asked now in this question'}, {'start': '122.960', 'end': '128.720', 'text': "it's fairly straightforward but as you progress\xa0\nthrough learning about time value of money the"}, {'start': '128.720', 'end': '134.160', 'text': 'questions can become very tricky or there could\xa0\neven be information that is not relevant to throw'}, {'start': '134.160', 'end': '140.880', 'text': "you off so uh you know I like this method right\xa0\nso how many years if you've seen my other videos"}, {'start': '140.880', 'end': '146.240', 'text': "you know that we have our term sheet over here\xa0\nyou know that we still haven't learned about"}, {'start': '146.240', 'end': '153.040', 'text': 'annuities so payments are going to be zero and\xa0\nwe are looking for N which is the periods so N'}, {'start': '153.040', 'end': '161.840', 'text': 'is what we are looking for remember everything is\xa0\nalways in the same place right on the timeline so'}, {'start': '161.840', 'end': '170.400', 'text': "let's go through this interest per year we know\xa0\nis 6% right here the number of years is what we're"}, {'start': '170.400', 'end': '181.760', 'text': 'looking for right present value we are starting\xa0\nwith $40,000 and we want to get to 80,000 and we'}, {'start': '181.760', 'end': '188.960', 'text': "want to figure out how long we know we're at time\xa0\nzero we want to know how many years it's going to"}, {'start': '188.960', 'end': '196.000', 'text': "take right now notice that uh the present value\xa0\nis negative the future value is positive i'll say"}, {'start': '196.000', 'end': '202.800', 'text': 'this one more time i have a very specific video\xa0\nwhich goes over why uh one should be negative'}, {'start': '202.800', 'end': '210.640', 'text': 'and one should be positive okay so really quickly\xa0\nthis is our this is our investment the 40,000 so'}, {'start': '210.640', 'end': '217.600', 'text': 'um this money is leaving us to go to work to go\xa0\nget invested to turn into 80,000 to come back to'}, {'start': '217.600', 'end': '225.360', 'text': "our pockets as a positive okay all right so let's\xa0\ngrab our financial calculator here let's clear"}, {'start': '225.360', 'end': '231.760', 'text': "out some of that old information second clear now\xa0\nI'm not going to fill out the the chart here maybe"}, {'start': '231.760', 'end': '237.520', 'text': "I'll do it for the first one just to give you guys\xa0\nan idea of what that looks like but you can see"}, {'start': '237.520', 'end': '243.520', 'text': "they're colorcoordinated so they are pretty\xa0\nmuch the same so in our financial calculator"}, {'start': '243.520', 'end': '249.840', 'text': "from left to right is the same as from top to\xa0\nbottom so we're going to do second clear and"}, {'start': '249.840', 'end': '254.480', 'text': "we're looking for n so we're not going to we're\xa0\ngoing to skip that one and we're going to do six"}, {'start': '254.480', 'end': '263.120', 'text': 'interest rate 40,000 negative for present value we\xa0\nhave no payments okay so just put a zero for it or'}, {'start': '263.120', 'end': '270.480', 'text': "you could skip it but I like to put zero and we\xa0\nwant to get $80,000 of future value okay so we're"}, {'start': '270.480', 'end': '282.080', 'text': 'going to compute the time period here how many\xa0\nyears this is in years so 11.895 so 11.90 years'}, {'start': '282.080', 'end': '294.560', 'text': "11.90 that's how long it'll take this 40,000\xa0\nto grow to 80,000 if the compounding or the"}, {'start': '294.560', 'end': '302.960', 'text': "interest rate is 6% okay straightforward right\xa0\nnothing too nothing too crazy okay let's move on"}, {'start': '302.960', 'end': '309.520', 'text': 'to the next problem grab my highlighter here you\xa0\nwant to save a million dollar for your retirement'}, {'start': '309.520', 'end': '315.520', 'text': 'right in the future for your retirement we know\xa0\nthat generally retirement is in the future if'}, {'start': '315.520', 'end': '324.240', 'text': 'you can invest a lump sum of $50,000 today look\xa0\nat this keyword here today today when you see'}, {'start': '324.240', 'end': '333.760', 'text': "today you should automatically think present\xa0\nvalue okay all right let's keep going and earn"}, {'start': '333.760', 'end': '340.720', 'text': 'an annual interest rate annual interest rate\xa0\nof a percent here comes the question how many'}, {'start': '340.720', 'end': '349.360', 'text': 'years will it take you to reach your savings\xa0\ngoal so n is what we are looking for we have'}, {'start': '349.360', 'end': '355.680', 'text': 'the interest rate we have the present value and\xa0\nwe have the future value right so the interest'}, {'start': '355.680', 'end': '366.800', 'text': "rate is 8% present value is the $50,000 that we\xa0\nhave today so that's going to go get invested"}, {'start': '366.800', 'end': '375.600', 'text': "so it's got to be a negative and we want 1 million\xa0\nback in the future that's a positive right okay"}, {'start': '375.600', 'end': '386.240', 'text': 'remember no payments we are looking for N simple\xa0\ninvesting 50,000 we want 1 million back in the'}, {'start': '386.240', 'end': '391.440', 'text': "future let's grab our financial calculator\xa0\nhere we're going to clear what was in the"}, {'start': '391.440', 'end': '398.320', 'text': "time value of money keys by hitting second clear\xa0\nso that can be clear okay and then so let's skip"}, {'start': '398.320', 'end': '405.760', 'text': "n because that's what we're looking for we're\xa0\nlooking at an 8% interest rate we have $50,000"}, {'start': '405.760', 'end': '414.480', 'text': 'today to invest our payments are zero\xa0\nand we want to get back a million at'}, {'start': '414.480', 'end': '417.040', 'text': "some point in the future but we're\xa0\ntrying to figure out at you know how"}, {'start': '417.040', 'end': '426.640', 'text': "long is that going to take so we're\xa0\ngoing to compute for n so 38.93 years"}, {'start': '426.640', 'end': '440.160', 'text': "38.93 years that's how long it'll take for\xa0\n50,000 to grow to 1 million at a rate of 8%"}, {'start': '440.160', 'end': '447.840', 'text': "okay all right so I hope that's starting to sink\xa0\nin the process of how we're solving these problems"}, {'start': '447.840', 'end': '451.200', 'text': "let's go to the last one this is this is the last\xa0\none this is a short This is going to be a quick"}, {'start': '451.200', 'end': '460.560', 'text': 'short video so again my highlighters so this time\xa0\nyou have $100,000 to invest today today I keep I'}, {'start': '460.560', 'end': '467.440', 'text': 'want to drill this in present value today if you\xa0\nwant to have $150,000 this one it literally tells'}, {'start': '467.440', 'end': '474.560', 'text': 'you in the future in the future you see that in\xa0\nthe future future value whereas in our previous'}, {'start': '474.560', 'end': '481.680', 'text': 'problem it said for your retirement so you needed\xa0\nto assume this was future value all right sorry a'}, {'start': '481.680', 'end': '489.680', 'text': 'little distracted there and the annual interest\xa0\nrate is 5% how many years will it take to reach'}, {'start': '489.680', 'end': '500.960', 'text': "your goal so no payments we're looking for n\xa0\nright interest present value future value so"}, {'start': '500.960', 'end': '510.080', 'text': "let's go through this the interest rate is 5% i\xa0\nhave $100,000 today right i have $100,000 today"}, {'start': '510.080', 'end': '520.320', 'text': "that's going to be a negative right so negative\xa0\n$100,000 and I want $150,000 in the future so"}, {'start': '520.320', 'end': '530.240', 'text': "how long will it take for 100,000 at 5% to\xa0\ngrow to $150,000 that is the question let's"}, {'start': '530.240', 'end': '536.480', 'text': "grab our financial calculator second clear so\xa0\nwe're going to skip the end the interest rate"}, {'start': '536.480', 'end': '546.960', 'text': 'is 5% the present value is the $100,000 that we\xa0\nhave to invest today negative zero for payments'}, {'start': '546.960', 'end': '559.520', 'text': "and we're hoping that that 100,000 turns into 150\xa0\nat 5% so let's compute our time period 8.31 years"}, {'start': '559.520', 'end': '567.760', 'text': "8.31 years that's how long it's going to take okay\xa0\nyou know after you do these problems you'll start"}, {'start': '567.760', 'end': '571.760', 'text': "getting comfortable with the numbers the numbers\xa0\nwill start you know you'll start getting a feel"}, {'start': '571.760', 'end': '578.240', 'text': 'for whether that number makes sense or not okay\xa0\nall right so that was pretty much it that was that'}, {'start': '578.240', 'end': '583.520', 'text': "was pretty much it so the keywords for solving\xa0\nI I don't know why I keep doing this sorry the"}, {'start': '583.520', 'end': '590.000', 'text': 'keywords when solving for solving for periods\xa0\nI need to fix that how many years and how long'}, {'start': '590.000', 'end': '597.920', 'text': "to reach a money goal right so they're questions\xa0\nrelating to time sorry about this okay all right i"}, {'start': '597.920', 'end': '602.560', 'text': 'hope that video was straightforward sorry for the\xa0\ntypo um again if you guys have any questions leave'}, {'start': '602.560', 'end': '607.200', 'text': "them in the comments and I'll be happy to solve\xa0\nany time value of money uh questions for you guys"}]