"The sooner you start saving, the more time your money has to grow."
This popular wisdom is the basis of one of the key pillars of finance: Having a dollar today is more valuable than having a dollar in one year, simply because I can invest the dollar today and earn interest on it. The purpose of this module is to understand the key issues surrounding this "Time Value of Money." We learn how to compute the future value of investments that we make today, and we see how to determine the present value of payments that we expect to receive in the future. Moreover, we look at important shortcuts in the valuation of simple investment projects such as perpetuities and annuities. While the module is rather technical, it provides indispensable skills that are relevant for virtually anything we do in finance.